ELI5 Ponzi Schemes - how do they work?

ELI5 Explain Like I'm 5: Bite sized answers to stuff you should know about - in a mini podcast

What’s the difference between a pyramid scheme and a Ponzi scheme? Why is it called a Ponzi scheme? What are some of the most famous Ponzi schemes in history?

... we explain like I'm five

Thank you to the r/explainlikeimfive community and in particular the following users whose questions and comments formed the basis of this discussion: brentrs89, megatron_mclargehuge, eyeheartboobs, fifth_down, rodneymunch11, lazydracula and kevlarbuns

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