First of all, how do you define financial pyramid? 'coz it has various definition such as the context of fraudalent scheme and the other one is a strategy to efficiently make use of your money as you get older. Ofcourse the market price of Bitcoin will depend on the demand since there's nothing to regulate its value unlike other assets. Lower supply means higher demand but that depends if the asset would really be creating a demand to its consumers or users. Not all things which has low supply will automatically have a demand.

And if this is about investment pyramid, then Bitcoin would more likely fall to high risk speculative assets simply because of its high rate of market price volatility and its usage across majority of countries.

To make it simple, Bitcoin is simply a currency and an investment at one and that is because of its characteristics with regards to its changing market price.

Since you're discuss about cryptocurrency aka shitcoins, then it's yes shitcoins is a financial pyramid because they offer unrealistic return if you able to invite people to invest in their project. Remember shitcoins is centralized, they can manipulate their supply and their price, it's not like Bitcoin which is decentralized. Bitcoin price is only depends on demand and supply, while shitcoins price is depends on demand and supply and manipulation.

The price of Bitcoin increases due to market demand, and also it is affected due to limited supply. This will be different from the money circulating in society. they continued to be printed and increased in number.
somehow I can't open your link, so I don't know what financial pyramid you mean. or can be more specific to your subject. the mention of cryptocurrencies may be too broad. maybe Bitcoin will represent your view.

The first guy that answered that Quora question said that it's like stocks and that's most likely easier to understand for those that doubt crypto. While those scam projects make the impression of this a pyramid or a scam. There are already negative thoughts about upon hearing the term pyramid and it's all about the scam. But it's not important at all, those projects that add no value to the market will always be exposed. But the good ones especially bitcoin will remain to be the most preferred crypto of all time. And it's the first one that has taken the negative thoughts and criticisms.

In the highlighted sentence, instead of the word Bitcoin, put the words Shares, Securities, and so on, and then you will see that little will change (actually, nothing will change). The same principles work in the traditional stock market, but for some reason no one shouts that this is a pyramid scheme, right.

And if you take the banking sector. Any bank. Investors together bring money to a bank, for example, silicon valley bank (all coincidences are random). At one point, panic begins and investors begin to take their money back. As a result, there will not be enough money for everyone, but only for those who first thought to take the money. The last investors are left with nothing. Isn't that like a pyramid?

What am I talking about? And besides, structurally, the work of bitcoin is almost no different from traditional financial instruments, and therefore, it is ridiculous for me to hear such accusations against bitcoin that it is a pyramid scheme. If their are have the courage to call bitcoin a pyramid, then let them call the entire stock market a pyramid too.

To be precise the increase of money does not necessary means there is an increase in bitcoin adoption.  There should be a meeting factor in order to say that there is a bitcoin adoption.  Although money is needed to invest in bitcoin market, it is necessary to have interest and acceptance.  So Bitcoin adoption will happen if people accept Bitcoin and put money on it.  In short to have more money to be injected on Bitcoin market, we need to attract more people to participate in Bitcoin economy.


Cryptocurrency is an open market, so there is no company that dictates the prices, the market moves according to the adoption so if we consider cryptocurrency being a financial pyramid then the whole markets can be consider as financial pyramid too.

You are right, that bitcoin will definitely increase in price, when there are many requests from people who will invest. But that doesn't mean that the amount of money in circulation will make bitcoin prices rise.

Indeed, this will certainly affect the price of bitcoin, but it will not have too much of an effect. Because it doesn't mean that a lot of money will have a big effect on the price of bitcoin. Even though a lot of money has been circulated around the world, in every country, it doesn't mean that people who have money will directly buy bitcoins. Because everyone must have what is called the necessities of life, so surely people will prioritize their needs first. Even bitcoin investors, I think, will definitely prioritize their needs first. Moreover, people who don't know bitcoin, are definitely most likely not to buy bitcoin.

So it's best not to make a benchmark, that with lots of money circulating in the world, it will make bitcoin prices rise, things like that won't be guaranteed.

What I meant to say is Bitcoin doesn’t need a new person to enter the system for it to be sustained. It does need demand continuously to exist and survive, but it doesn’t require a continuous loop of more investment today than yesterday to exist. Most “Bitcoin is a pyramid” theories come from the presumption that without a new investor tomorrow, Bitcoin dies. It doesn’t. It can live without new “victims”.

When I said others would continue buying too I was talking about others who already are Bitcoin investors. I meant to say there’ll be demand even if the price doubles because we all get it, the supply is just getting scarcer. Remember I said BTC doesn’t need increasingly higher demand to exist. Because typically, pyramid schemes need more money today than yesterday, more investors today than yesterday etc until they finally can’t do it anymore. To me BTC is just in no way close to the definition of a pyramid..

It is either way I think Bitcoin is not getting or getting more scarce is dependent on the available supply to meet the demand.  Even with fewer Bitcoin in circulation if there is no demand for it, it won't be called scarce. 

We can compare an example of Bitcoin being 100% mined and lots of wallets with funds lost but it is fully available in the market and is selling at a stable price, this scenario does not show Bitcoin scarcity.  While in a scenario where Bitcoin is not yet fully mined and there is a supply of coins every 10 minutes but the demand outweighs the supply creating a shortage of Bitcoin that makes the price surge, then we can say that there is scarcity in that scenario due to shortage and more demand.

So shortage is the determining factor of scarcity. Demands outweigh the supply.