Earlier quoted context omitted.
> Basically what's missing is the ability to even guess at the "true" value of cryptocurrency. There's no P/E ratios to consider because the only thing Crypto "produces" is Crypto transactions. It's also impossible to even guess at a floor or ceiling for the price of a cryptocurrency. The only thing that determines their price is human sentiment - a very fickle input. Interestingly, this isn't really true anymore. Mo…
As a layperson who doesn't know a whole lot about investing, this sounds like a ponzi scheme. The way that I am interpreting this is that if I were to invest in one of these (i.e. Maker) then the returns that I would see are there purely because other people are investing in it. That is close to what most stocks do, but at least with stocks in a company the value is not driven by the mechanism by which it is traded a…
That's the opposite of what I'm saying. The returns are from other people using the platform, not from investors in it. For Maker, using the platform means borrowing. For Uniswap, the returns are from a small % fee on trades. It's exactly analogous to a traditional company.