Ponzi Financing, Negative Interest Rates and Bitcoin

5 min read

In previous series of our Ponzi analysis, we have established a simple model – the old school Ponzi model. In this model, we have made several intuitive conclusions: Ponzi is essentially a process of cash flow management; The existence of interest and compounding is actually a power-law function of the difference between cash inflow and outflow; The ceiling of markets where Ponzi exists is the core factor limiting its life cycle. Today, we continue to analyze the Ponzi financing model, and further study the paradigm shift of the three financing models.   1.Three Types of Financing Models: Ponzi Financing, Hedge…...

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Alan Zhang Alan Zhang is an investor and market gazer that leverages greatly on data technology in decision-making. He is familiar with the different financial markets of China including the stock, futures and cryptocurrency market. Further, he participated in the establishment of alternative investment markets like black tea since 2014 and was responsible for the private placement of Huangshan Tourism shares (600054.sh) in 2015. He is currently also a Financial Analyst at X-Order, an innovative research institute that attempts to combine cross-disciplinary fields such as distributed computing, computational game theory, artificial intelligence and cryptography to discover future extended orders. It was founded by Tony Tao, who is also a partner at NGC Ventures.