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The entire crypto ecosystem is a ponzi

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Re: The entire crypto ecosystem is a ponzi

#41

Post by __jem »

everfree wrote: post #23
chrisgd wrote: post #6

Earlier quoted context omitted.

I don’t think that is true at all. There is economic value in a piece of equity in google. The price someone is willing to pay for it changes frequently. Crypto is closer to art than anything else. I get less value from a rothko than someone else may

> There is economic value in a piece of equity in google. It doesn't entitle you to profits, it doesn't entitle you to assets (except in bankruptcy), you can't eat it, and it's only worth what other people will pay you for it. Unlike a rothko, I can't hang it in my living room. Where's the value?

It absolutely does entitle you to profits, either in the form of dividends or stock buybacks.

Re: The entire crypto ecosystem is a ponzi

#42

Post by incone123 »

everfree wrote: post #23
chrisgd wrote: post #6

Earlier quoted context omitted.

I don’t think that is true at all. There is economic value in a piece of equity in google. The price someone is willing to pay for it changes frequently. Crypto is closer to art than anything else. I get less value from a rothko than someone else may

> There is economic value in a piece of equity in google. It doesn't entitle you to profits, it doesn't entitle you to assets (except in bankruptcy), you can't eat it, and it's only worth what other people will pay you for it. Unlike a rothko, I can't hang it in my living room. Where's the value?

Nothing prevents you hanging share certificates in your living room except your personal taste.

Re: The entire crypto ecosystem is a ponzi

#43

Post by chinathrow »

glennvtx wrote: post #16

This is a terrible argument, and clickbait. Obvious enough to anyone who actually understands how bitcoin, or eth work, it does not fit the definition of a ponzi scheme. Most tech stocks fit the definition better. Just because a few centralized banks, (FTX, centralized crypto exchanges are banks) have failed, means nothing, since the original idea of cryptocurrency was to do away with centralized institutions like th…

If regular banks would fail with the same rate Crypto venues fail, then you might have a point.

Re: The entire crypto ecosystem is a ponzi

#45

Post by bcrosby95 »

the_mitsuhiko wrote: post #5
jrm4 wrote: post #3

Earlier quoted context omitted.

This. Today's stock market bears little relation to "a thing where you can buy shares of a company, and if it does well you can get paid by selling it."

And yet there is a legal definition of a Ponzi scheme.

Yes, and all the currently operating network marketing companies, legally, aren't Ponzi schemes. Yet I bet many people would call them a Ponzi scheme.

Re: The entire crypto ecosystem is a ponzi

#46

Post by JumpCrisscross »

lrvick wrote: post #27
chrisgd wrote: post #6

Earlier quoted context omitted.

I don’t think that is true at all. There is economic value in a piece of equity in google. The price someone is willing to pay for it changes frequently. Crypto is closer to art than anything else. I get less value from a rothko than someone else may

There is economic value in inflation resistance, censorship resistance, and privacy. The fact most get-rich-traders do not care about these things and -also- speculate is irrelevant to the fundamental value.

> inflation resistance

Bitcoin hyperinflated in the last year.

Re: The entire crypto ecosystem is a ponzi

#49

Post by lrvick »

chinathrow wrote: post #43
glennvtx wrote: post #16

This is a terrible argument, and clickbait. Obvious enough to anyone who actually understands how bitcoin, or eth work, it does not fit the definition of a ponzi scheme. Most tech stocks fit the definition better. Just because a few centralized banks, (FTX, centralized crypto exchanges are banks) have failed, means nothing, since the original idea of cryptocurrency was to do away with centralized institutions like th…

If regular banks would fail with the same rate Crypto venues fail, then you might have a point.

Early banks failed all the time. Give it another decade or so for regulation to start mandating accountability.

Re: The entire crypto ecosystem is a ponzi

#50

Post by onethought »

glennvtx wrote: post #16

This is a terrible argument, and clickbait. Obvious enough to anyone who actually understands how bitcoin, or eth work, it does not fit the definition of a ponzi scheme. Most tech stocks fit the definition better. Just because a few centralized banks, (FTX, centralized crypto exchanges are banks) have failed, means nothing, since the original idea of cryptocurrency was to do away with centralized institutions like th…

I mean communism looks pretty cool on paper too, the actual idea. But we seem to have had a real hard time implementing it. Could crypto be like that?
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