It’s unbelievable, but I get asked a lot and that, is Bitcoin just a pyramid scheme? Frankly, I have no idea where the idea comes.
So, to make it clear, cryptocurrencies or Bitcoin are NOT a part of a pyramid scheme or MLM.
Why are cryptocurrencies or Bitcoin not a pyramid scheme?
Even though some people may argue the point regarding the ethical aspects of cryptocurrencies, they are not illegal. While on the other hand pyramid schemes have been illegal for many years.
The main reason is because a pyramid scheme’s goal is to enroll people into a scheme that takes your money and gives no value such as a product or a service.
While cryptocurrencies or Bitcoin have value in themselves because they are a digital currency. Also, if someone is trading or investing in Bitcoin they are well aware of the risk they are taking in the dealings.
A pyramid scheme gives the enroller no chance of making money because their money is going into the pockets of criminals.
Is Bitcoin MLM?
Even though MLM and network marketing is completely legal it has nothing to do with cryptocurrencies or Bitcoin. However, over the last few years there have been some Bitcoin MLM companies. They have blended their MLM marketing plan with cryptocurrencies such as CryptoTab and Fire Faucet.
The main concept in a MLM company is to offer value to the customer. This allows almost anyone to start their own business from home. The product or service is normally high quality, unique, niche and only obtainable through their distributors.
Final words about is Bitcoin just a pyramid scheme?
The fact is running a MLM business or doing cryptocurrency trading has its risks. However, with both of these ways of making money the individual needs to assess the risk and decide if they are getting value. If you are not getting value either in the products in MLM or in a currency it is likely to be a scam or a pyramid scheme.
As they say, “Buyer beware!”
If you would like to know more about home businesses, personal investments or Bitcoin MLM companies check out the rest of this blog.
