AFAIK the definition of a Ponzi scheme is a fake investment where no actual investment in productive activities takes place and all profits are paid out from increasing intakes.
Bitcoin matches this definition exactly since pumping up the currency is not connected to any real world productive activity.
Ethereum has some theoretical practical uses but most of the ICO nonsense is pure Ponzi.
Defining a Ponzi can be difficult because in order for something to truly be a Ponzi scheme it must be engaged in with fraudulent intent.
Really stupid people who "invest" in really stupid things and waste their money on useless stupid activity don't count as a Ponzi because they don't have fraudulent intent. They are just really stupid.
Whatever participants in digital currencies are not in the first category are in the second category so it isn't much to be excited about.
Well you have a poor understanding of the definition of a Ponzi scheme. ICOs do not make any promise of a return on investment or paid dividends, the way a Ponzi operator would. Coin makers do not use the income from new investors to pay dividends to older investors, the way a Ponzi operator would.
You are buying the currency, once you receive it the contract with the coin's creators is fulfilled, you are not an investor, you do not own any shares of any company. It is a one-way transaction.
Perhaps you meant pyramid scheme, of which ICOs are also not an example.
>AFAIK the definition of a Ponzi scheme is a fake investment where no actual investment in productive activities takes place and all profits are paid out from increasing intakes.
The way to tell your understanding is wrong is that it would describe every currency, and every possible asset (land, valuables, etc).
Bitcoin matches this definition exactly since pumping up the currency is not connected to any real world productive activity.
Ethereum has some theoretical practical uses but most of the ICO nonsense is pure Ponzi.
Defining a Ponzi can be difficult because in order for something to truly be a Ponzi scheme it must be engaged in with fraudulent intent.
Really stupid people who "invest" in really stupid things and waste their money on useless stupid activity don't count as a Ponzi because they don't have fraudulent intent. They are just really stupid.
Whatever participants in digital currencies are not in the first category are in the second category so it isn't much to be excited about.