Sounds like someone missed the train, again.
You understand that you're characterising crypto as a pyramid scheme, I guess?
We missed the train on MSFT, AAPL, TSLA, etc. as well. Are those pyramid schemes in your eyes, too?
New study detects lottery-like behavior in cryptocurrency markets
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Re: New study detects lottery-like behavior in cryptocurrency markets
#12Earlier quoted context omitted.
My thought exactly. There's a crazy amount of speculation in real estate, stocks, and commodities, but I've never heard it called "lottery-like".
That’s because all of those things are predominantly traded due to their underlying utility. Like lotteries, which have no utility other than taxes and speculation, crypto currencies are almost entirely valuable as tools for speculation.
What? Plenty of crypto projects have real utility. Also for a counterpoint: commodities such as gold and other precious metals are predominantly traded as speculative vehicles.
Re: New study detects lottery-like behavior in cryptocurrency markets
#13Is this sort of a precursor for classifying cryptocurrency as a lottery and therefore making it a subject of strict regulation?
Re: New study detects lottery-like behavior in cryptocurrency markets
#14It's trivial. Just say any is pure speculation of thin air and you'll be right. There's no sense in the currently existing crypto currencies. They're all fiat money. Peter Schiff was right back then... https://www.youtube.com/watch?v=sgRGBNekFIw and he's still right now. https://twitter.com/peterschiff/status/1345427870546538509
You're getting crazy down voted, instead people should reply.
Re: New study detects lottery-like behavior in cryptocurrency markets
#15how does it compare to the gambling of stocks on Robinhood?
It is probably very similar when it is stocks that are nearing bankruptcy or otherwise have horrid fundamentals.
If the stocks do have fundamentals and the PE ratio makes sense relative to the growth factor, then it isn't pure gambling.
Re: New study detects lottery-like behavior in cryptocurrency markets
#16No shit.
Re: New study detects lottery-like behavior in cryptocurrency markets
#17Earlier quoted context omitted.
That’s because all of those things are predominantly traded due to their underlying utility. Like lotteries, which have no utility other than taxes and speculation, crypto currencies are almost entirely valuable as tools for speculation.
What? Plenty of crypto projects have real utility. Also for a counterpoint: commodities such as gold and other precious metals are predominantly traded as speculative vehicles.
Which crypto projects are providing real utility to people outside the crypto space?
I can think of using bitcoin for remittances or drug purchases, but other than that I have trouble thinking of compelling examples.
Re: New study detects lottery-like behavior in cryptocurrency markets
#18how does it compare to the gambling of stocks on Robinhood?
if you read the article you’re commenting on, they mention that and forums like Wallstreetbets
Re: New study detects lottery-like behavior in cryptocurrency markets
#19It's trivial. Just say any is pure speculation of thin air and you'll be right. There's no sense in the currently existing crypto currencies. They're all fiat money. Peter Schiff was right back then... https://www.youtube.com/watch?v=sgRGBNekFIw and he's still right now. https://twitter.com/peterschiff/status/1345427870546538509
They are fiat money?
I don't think they are fiat money. Fiat money has actual utility as you need it to pay your taxes.
Re: New study detects lottery-like behavior in cryptocurrency markets
#20Of course. Anyone who claims to understand cryptocurrencies pretty well is lying.
I consider myself an intelligent person. Maybe I'm not, but I try to take informed decisions and stay up to date with the latest technology developments. Even with this, I have a very mediocre understanding of cryptocurrencies. I do understand well how a blockchain works, but I would be lying if I said that I understand well the economic dynamics of the cryptocurrency market.
For starters, there are a gazillion of tradeable cryptocurrencies with different premises and value propositions. They all have extremely different dynamics with the only common denominator being the concept of a blockchain.
I do invest on cryptocurrencies and I try to use some signals, mainly trying to understand the viability of the coins I pick in the long term and their potential impact on the financial system. It's not a very scientific analysis, but I can tell you it's deeper than the analysis than most people who invest in crypto do.
Most people just put money on Crypto markets because its exuberant growth. They are not thinking on whether this is a viable investment or not. They just want to participate and most times this is with an all-in win or lose mentality. And I'm not only talking about retail investment. Many institutional investors are operating on the same idea.
Crypto is extremely speculative. The more speculative an investment is, the less predictable. So, I totally buy the idea of a lottery-like behavior. This is going to be the case until crypto coins start morphing into actual transactable currencies that can be used for commerce, remittances, wages, etc.