Looks like a Ponzi scheme.like Bitcoin
..BTW I have a book that biographs Ponzi and outlines the scheme. Parallels between Btc and Ponzi are there (mathematics might be a bit like string theory).
I am the first to admit that we should see at least a 50% drop in BTC price likely this month. It is going up almost vertical on a weekly chart and a major correction would be required for a more stable Bitcoin. Today BTC has broken out and is headed to $40,000. (Do not buy at these inflated prices. BTC going on sale soon!
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There are a lot of Ponzi schemes run by the government. Take pensions for example. To keep paying out to retirees (back end) they need more new workers coming in at the front end. Without new people joining the pension plan it will eventually run out of money. Pension plans have been set up to expect 7.5% to 8% returns year over year. This is unrealistic in today's economic environment. If they get less than that they will collapse. Since 2000 when interest rates were deliberately kept low by Greenspan, pensions started losing money because bonds were only paying around 4% and their funds had to have a certain amount invested in bonds. They had to invest in more risky assets that provided higher returns and investments flooded into real estate because mortgages were so low and the flood of new money shot up home prices, and we all know how that turned out. Now with massive unemployment it means people are not paying into their pension funds, so pension funds will quickly collapse unless the government bails them out, with borrowed money. This causes inflation which sends up the price of BTC and commodities.
Then the greatest Ponzi scheme of all is the U.S. dollar, or fiat currencies in general. Think about this for a minute. Let's say the government borrows $1 billion from the Federal Reserve and they give them $1 billion of bonds as collateral that will have to be paid off in 10 years with say 5% interest. The Federal Reserve (private bank) gets the bonds and the government gets the billion dollars. Most people think this is a fair exchange because all they did was to exchange paper, bonds for currency. But it's not fair. 10 years later the Federal Reserve cashes in these 10 year bonds and gets back their original $1 billion plus $628,894,627 in interest from the government. Where did the $1.628 billion come from? Remember the government spent the original $1 billion into the economy and by paying off old debt. It no longer has the money. Money can only be printed by the Federal Reserve, so the government now has to borrow the $1.628 billion from the Federal Reserve to pay back the loan and the the interest on the original $1 billion loan. This creates a 2nd loan for $1.628 billion and the process is repeated. The loan will never be paid off because the money needed to pay it off can only be created by the lender namely the Federal Reserve. The government could raise taxes and have its citizens pay the $1.628 billion but that still means this money has to be borrowed into existence so the citizens will have to borrow it, or the company they work for has to borrow it into existence. This is why debt will always grow larger and larger and governments will never be able to balance their budgets without massive austerity (cut backs to government services). But it gets worse. What did the Federal Reserve put up to get the $1.628 billion? They printed the "money" at a cost of around 8 cents per $100 bill for the paper and ink which would have cost them $800,000. The Federal Reserve (private bank) spent $800,000 and got back $1.628 billion ten years later. That is a great return if you ask me. Today they don't even have to spend the $800,000 to print the money because they just enter a few numbers into the computer and the government is on the hook for the debt. The Federal Reserve is suppose to return their "profits" back to the treasury <cough><cough> but profits are often easily adjusted downwards. They funnel the profits through their banking cabal, namely Wall Street banks who make tens of billions of dollars off of the money they get from the Federal Reserve by loaning it out to corporations and to other banks around the world. You see, Wall Street banks own the Federal Reserve along with foreign bankers. It's the tail wagging the dog. It is a very cozy relationship that allows the wealth of the nation created by its workforce to be extracted by foreign bankers. Matt Taibbi said it best when he talked about Goldman Sachs and could apply to all Wall Street banks "
The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money." BTW, that dollar bill or Euro note you have in your wallet, someone is paying interest on it. Those are debt notes, not real money. It is a scheme the bankers worked out a century ago and the general public has never caught on to the scheme. None of this would have been possible if the United States kept printing its own money and it would have been a much wealthier nation. But that never happened because crooked politicians allowed a banking cartel to come in and print its currency and control its nation. Mayer Amschel Rothschild said: "
Let me issue and control a nation's money and I care not who writes the laws" — Mayer Amschel Rothschild
That's why we need Bitcoin and crypto currencies in general. The people need to regain control of their currency and their investments. I would much rather have my wealth invested in crypto currencies (even with a temporary 50% drop in price) rather than in a pension fund that won't be there when I need it. Just one guy's opinion.