Is Bitcoin a Scam? A Ponzi? Is It Safe?
Mar 18, 20258min read time
Is Bitcoin a Scam? Let’s Get to the Truth
Is Bitcoin a scam? This post is for you if your relatives call it sketchy, your neighbors swear it’s a Ponzi, or your financial advisor brushes it off with, “It’s got no use case,” “No cash flow,” or “It’s not safe”—all while dodging the topic. Yet you can’t help but notice Bitcoin’s value climbing, its influence growing, and more people worldwide jumping on board. If that’s you, wondering what’s real, stick with me.
Bitcoin Is Just Software—Not a Scam
Let’s start simple. Bitcoin is software—computer code written by Satoshi Nakamoto. It’s open-source, meaning anyone can read it, check it, or run it on their own machine. It’s a set of rules you can choose to follow if you’d like. No one’s in charge of the Bitcoin network. No group controls it. Nobody gets special perks that you and I do not. So, the “scam” label? That description couldn’t be farther from the truth. Satoshi published every line of code, plus a paper called “Bitcoin: A Peer-to-Peer Electronic Cash System” (linked below). The software is transparent and does exactly what it was intended to do. What is that stated intention? Create digital money you can send directly to someone else, without the help of a company or government being needed. At first glance, maybe that doesn’t sound like a bit deal to you. But think about it: before Bitcoin, almost every transaction—debit cards, PayPal, checks—relied on a middleman. That’s a relatively new thing in human history. For thousands of years, we transacted peer-to-peer. Over the last century, we lost that, and some worry it’s cost us privacy and freedom. I certainly do. Satoshi built Bitcoin to fix that—a simple, honest tool for independent transactions. How’s that a scam? There are many examples in our culture where we cheer on and encourage each other to gain independence. We encourage learning to ride a bike or drive a car to get around independently. We encourage learning to read and write to enable individuals to share information and stories. Why not encourage individuals to transact with one another? Bitcoin’s fair, open, and yours to use. That’s no scam.
Sketchy or Unsafe? Hardly
Maybe you’re thinking, “Okay, but isn’t it risky?” Nope. Bitcoin’s one of the safest digital tools, ever. The Bitcoin Network has never been hacked—not once. Banks get robbed. Governments print money and create inflation without our consent, causing billions of people to suffer worldwide. Companies and governments fail to protect our sensitive personal data that they collect. But Bitcoin? It’s never been hacked. It has never been cheated or stolen from. It doesn’t do anything deceptive. Sure, you’ve heard horror stories—people losing Bitcoin on exchanges like FTX, sending it to scammers, or losing a USB drive. But that’s not Bitcoin failing; that’s people messing up. If I tell a bad guy where I live, and invite him into my home, then get robbed, it’s not my house’s fault. Bitcoin’s the same. It’s operates reliably and predictably. The important thing is to learn how it ouse it properly.
A Ponzi? Check the Facts
A Ponzi, per Oxford, is “a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors”. That doesn’t seem to describe Bitcoin at all. It’s software running a real network, existing in the digital and physical world, with trillions of dollars worth of value invested voluntarily. It has not relied on deception to achieve this result. It’s transparent and honest, not fraudulent. Everything has a market price, like eggs or a Rolex. They aren’t Ponzis. Bitcoin’s market price is the result of economic exchange happening everyday between millions acting in their own best interest, by choice. A big risk users still face is due to lack of education. Scammers who understand bitcoin more than the general public exploit that, unfortunately. But next time someone cries “Ponzi,” ask them why. You’ll likely get a word salad answer defending a weak position.
Financial Advisors Are Ill-Prepared, Ignorant on Bitcoin
Finally, financial advisors telling you to stay away from bitcoin? Unfortunately, most are late and too often, unwilling to learn bitcoin even though its important for their clients. They don't understand the Bitcoin network and they are way behind. They get told by their bosses on how to steer the conversations with you back to the types of product they are allowed to sell, rather than actually help you learn and decide if bitcoin is good for you. Bitcoin-Minded has spent a lot of time in the field learning this unfortunate truth. Think about how silly that is. If you look at bitcoin as an asset, as a financial advisor might, it has been one of the greatest performing assets of all time. And yet, financial advisors remain largely uninterested and incapable of helping you out with it. We've got a lot of work to do to educate financial advisors, but we are doing our best by helping open-minded and passionate advisors get up to speed quickly on Bitcoin with a customized course for them. As head of education here in the US, I've run into a few advisors with a high level of integrity who are putting in the necessary work to help their clients with Bitcoin. So I’m optimistic the good advisors will catch up and push their industry ahead. If you use a financial advisor, have you asked them if they can help you with Bitcoin? What did they say?
Final Take
At Bitcoin-Minded, we prioritize teaching you to use Bitcoin properly, holding it in self-custody. Our courses help individuals, families, and businesses do just that. It's how you'll gain the greatest amount of freedom, privacy and protection with Bitcoin.
Hopefully the work we’re doing at Bitcoin-Minded can help you. Learning to benefit from bitcoin fully isn't a quick and easy process, but it is worthwhile. So next time you hear negative remarks from a friend, or a neighbor, or your financial advisor about bitcoin, ask them to explain. Then go check the facts! I'm willing to bet that as you learn more, you'll be like a lot of bitcoiners and find that using bitcoin is the best chance we have at a safer more prosperous future for ourselves and those we love. It is safe, dependable, and honest. If you're ready to learn bitcoin in a fun way now, then put yourself on the Bitcoin-Minded course waitlist. It’s linked below. The course fits busy lifestyles and can be done at your own pace. More spots will open soon. Putting yourself on the waitlist doesn't commit you to taking the course, but it does let us know you're interested in learning more. We'll make sure you're one of the first to hear when our next spots open up!
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