Earlier quoted context omitted.
I'm a crypto bear myself, but I'm not sure I agree with this argument. Plenty of services are built around "just moving money around" - accounting in this way has a ton of real value or else stripe, visa, paypal etc wouldn't be the huge companies they are. The questions are, whether "investing" by buying and holding is the right way to capture the value that this produces, and whether the benefits of doing it on a di…
That's not quite correct, although I understand your sentiment. When you own a share of Square (or Visa, or PayPal) each time a transaction takes place on their network, a portion of that transaction (revenue minus costs) accrues to the company - and by extension increases the intrinsic value of your share. The transaction revenue is spent on furniture, on R&D, on employees and on buffing up their cash position. As a…
You pay a fee for each transaction you send, just like any other service. b
However, your holdings increase in value the more other people use the same chain because the value of the entire ecosystem needs to scale proportionally to the value people are attempting to transact across it.
Financial systems, like social networks, and most businesses coming out of SV rely on network effects for much of their value.
USD has been the default option for the world, and enforced through violence when people attempt to create their own networks of trade.
The positive sum value that cryptocurrency is attempting to create is the ability to send anyone in the world any amount of value (money or otherwise) not subject to government permission, or sabotage (ie money printing)
It's like any one being able to suggest a Federal Reserve policy, and the vote being handled by the people, not representatives or a committee.
It is revolutionarily democratic.