Ponzi has lost its meaning, partly because we’re unwilling to distinguish between Professional Criminals and incidental Lawbreakers. The majority of situations we call Ponzi are NOT repeats of Carlo Ponzi’s original intention and method. Social Security is not a Ponzi. It’s a well-designed investment fund, which was ruined for many years by Demon Bush’s demonic zero interest. Bitcoin is a fraud but it’s not a Ponzi. It falsely claims to be a currency and a solution to all the world’s problems. It’s not a currency or a solution, it’s just a plain old database program.
The commonly stated definition is NOT a crime. Every business and household uses the latest income to pay bills, unless they have a huge cash reserve. Living paycheck to paycheck isn’t a crime.
Fraud has nothing to do with timing of income and outgo. Fraud is claiming an increase of value without any real increase of value. This specific fraud could be committed without any income or outgo!
Carlo Ponzi claimed he was increasing value by buying and selling postal reply coupons. He wasn’t buying and selling PRCs at all. He was just using an ever-increasing income from customers to pay the (fairly rare) requests for withdrawals. His fraud would still be a fraud if he didn’t bring in any customers.
Polistra's Mill 