Money

Notes from "Explained"

Money

• Ponzi scheme - after Charles Ponzi
• Evolutionary - we are wired to trust
• we think we are good lie detectors but we are terrible lie detectors
• Scams
  • Advance Fee Scam
  • Pump and Dump
  • Ponzi scheme
  • Pyramid scheme
    • Pyramid != MLM until most business comes from outside
  • Coaching scheme
    • business where they teach you how to make more money
    • fantastic promise
    • compelling stories
    • social proof
    • sense of urgency
• crypto
  • usa -> ponzi-type nature
  • one coin - ponzi scheme
  • ruja - cryptocurrency queen
• puffery, embellishment
  • no reasonable buyer would take it seriously
  • difficult to know where puffery ends and fraud begins
• difficult to differentiate b/w well-meaning entrepreneur v/s scoundrel
• without trust, we are nowhere as a society. we cannot build society if we don't trust one another
• trust goes hand in hand with prosperity
• "wouldn't want to live in a world where you couldn't be conned. in that world, you wouldn't believe in anyone/anything."

Billionaires

• 0.0001%
• Dozen are world leaders
• Capital - anything you own that can make you money (house, stock, your likeness)