Swan Bitcoin CEO says BTC ‘Ponzi’ label lacks basis

Swan Bitcoin CEO Cory Klippsten said financial commentators have not presented sufficient grounds to call Bitcoin a Ponzi scheme. Klippsten said prominent figures including Nouriel Roubini, Paul Krugman and former Bank for International Settlements Secretary General Agustin Carstens have argued Bitcoin is a Ponzi because it generates no cash flow and early holders profit from money put in by later buyers. He said that logic would also classify gold, art and collectibles as Ponzi schemes because they pay no dividends or interest and depend on someone else paying a higher price for investors to realize gains. Klippsten explained that the core of a Ponzi scheme is an operator who falsely claims to generate investment returns and uses money from new investors to pay earlier investors, while BTC has no such operator or fraudulent investment activity.