In German the word for Ponzi scheme is "Schneeballsystem". It is very symbolic. Imagine a small ball of snow rolling down a hill. It becomes bigger and heavier. It rolls faster and then it can't be controlled anymore. A Ponzi scheme is a system of fraud that functions like a snow ball rolling down a hill getting bigger, heavier and out of control.

A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns for early investors by acquiring new investors. This is similar to a pyramid scheme in that both are based on using new investors' funds to pay the earlier backers.

On YouTube I stumbled over a documentary about Charles Ponzi today. It tells the story of Charles Ponzi and his famous form of scam. It is very exciting to watch and gives you insights about the person of Charles Ponzi. And maybe you learn something for yourself dealing with cryptocurrencies. Enjoy watching!