Maybe actually ponzi schemes have long been carried out by certain people since time immemorial, both in urban and rural areas, the assumption of the author always says when business without Sharia or religion, then business is always done in a cunning way.
But it is indeed "officially" a ponzi scheme invented by Charles Ponzi in the 20th century, who originated in the United States.
The Practice of Ponzi Schemes
In a ponzi scheme the principle of "dig a hole close the hole" applies, some of the money earned from people's "investments", will be used to pay commissions to recruit new "investors", and some of it will be put into the company's profits.
Even though the business that is run is not how productive, there is even no business at all. The earlier the "investor" joins the more exclusive the package, the more money will be earned, so that over time it will form a pyramid, much below, less or more narrowed up.
Ponzi schemes in its development are known as Multi-Level Marketing (MLM), "word of mouth" marketing, with tiered commissions.
The furor and propaganda of abundant profits made the ponzi scheme cost many victims, and lasted long enough, but of course when finally there were no "investors" who joined again, then there was no money that could be used, because there was really no profit, only people's money was swirled, "dig a hole close the hole" modern way.
What About the Usury System?
If it is a ponzi scheme, no profit is made, only people's money is rotated, then in the usury system, when the money in circulation is then charged usury, then the usury payment will never exist, except by printing new money.
In other words, the profit of usury is obtained from something that does not exist, the more money spins, the more it demands a fast economic wheel, so that then more money will circulate, and continue to spin like that, over and over again.
Over time like a bubble, the economy is actually empty and weak, very vulnerable to bursting, fragile and unreliable, but in fact the usury system is not stopped, but increasingly sophisticated and modern, with various "patchy" solutions, one point patched, another point open.
Because if the usury system is stopped, then the depravity and destruction of those who control the usury system will occur quickly.
Wallahu a'lam bishawab