Post by Blue Meme / Redsky

How do you write an article describing such blatant scams without using the words “Ponzi” and/or “Pyramid”?

wsj.com 1) By buying Strategy, new shareholders are overpaying for bitcoin. They could easily buy the cryptocurrency for themselves directly or via an ETF 35% cheaper. The much-touted rise in bitcoin per share happens because it exploits investors' willingness to overpay for Strategy's shares. Strategy's strategy is, in effect, trading against its new shareholders. This unusual approach can only work so long as investor demand for the idea exceeds the supply of shares from Strategy and its copycats. The premium has already dropped a lot as it has been exploited by Strategy and if it disappears, the whole approach comes to an end. 2) Strategy is moving the price of bitcoin itself. The company is now so big that its issuance and purchases might be what has pushed up the price of bitcoin recently. If it ever needed to sell to raise cash for its debt repayments, bitcoin is likely to take a hit.

aug 24, 2025, 1:40 pm • 22 4

Replies

Because Bitcoin isn’t a Ponzi or a pyramid, or a bubble for that matter.

aug 24, 2025, 2:12 pm • 2 1 • view

In every Ponzi scheme there are some early participants who genuinely did very well. The key is to have the subsequent, prospective participants look only at the success of the first waves and not suspect that they are being teed up to be fleeced

aug 24, 2025, 2:35 pm • 1 0 • view