Is Bitcoin a Pyramid Scheme?

The cryptocurrency bitcoin is up over 1700% since it’s creation. This is good news for those who want to invest in the currency. We have also learned that this cryptocurrency could be the next big thing. This is something to watch out for because if it goes too high, people are going to sell off just like they did when the internet bubble burst.

In the beginning of the bubble in the stock market, it almost sent us all over the world into a huge bull market. I remember at one point, people were buying houses, cars, and even pulling money out of the stock market!

That’s not a good thing. A lot of people have seen how much bad things can happen when you get into the stock market. It is not a good idea to get in when it is so hot.

Another concern for many of us was how low interest rates would affect bitcoin. As we know, interest rates are still quite low right now but bitcoin is predicted to keep going up because of its decentralized nature.

However, it is important to keep in mind that all things come with security measures and stability. While we are still waiting for stability, we can always look into using other more stable currencies such as the U.S. dollar.

Another good place to watch out for is a Ponzi scheme and pyramid scheme. Many people got burned by pyramid schemes before and we must avoid them. Many people get caught up in these schemes and end up losing a lot of money.

Bitcoin is a new kind of technology and an information network. These things do not come easily and people are learning that it takes some time before a currency comes into its own.

Just like e-gold, there will be more sophisticated ways to use this technology and make it into a powerful currency. For now, keep your eyes open for signs of scams and watch out for signs of problems as well.