The Idea Meritocracy | Principles of Bitcoin Series | Episode 1 (WiM254)
The "What is Money?" Show
00:00
Fiat Currency Pyramid Scheme
A pyramid scheme is a business structure in which those in higher tiers are basically stealing value from those in lower tiers, right? These are often new entrants, right? The pyramid scheme is constantly trying to add new participants that can fund the wind fall of higher layer participants and the scheme keeps working so long as you add new participants. Once there's no one, once there is no one left at the bottom of the pyramid to steal from, that's what causes the pyramid scheme to collapse. And I think that's why we're going to see them collapse again because there's only so many people in this world and people don't like to get scammed.
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