Ponzi Schemes VS Pyramid Schemes How Do They Work?

Pyramid schemes and Ponzi schemes share many of the same traits where unwary people are tricked by unethical financiers who guarantee amazing returns. Nevertheless, in contrast to a normal investment, these kinds of systems can supply steady "earnings" just as long as the amount of investors continues to rise. 

Ponzi and pyramid schemes are self sustaining provided that money outflows can be matched by money inflows. The fundamental distinction emerges in the kind of items that schemers deliver their customers and the structure of the two schemes.

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