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The entire crypto ecosystem is a ponzi
81–90 of 268 posts
Re: The entire crypto ecosystem is a ponzi
#82Earlier 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?
The classic finance answer--which is indeed perhaps zero in the case of Alphabet--is that the value of a stock is the net present value of its dividend payouts. Buybacks complicate that simple formula as do a lot of other things but, in theory, a share of stock does entitle you to a share of the profits of a company.
Re: The entire crypto ecosystem is a ponzi
#83This 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…
An ecosystem is a centralized entity. Sure, Bitcoin is useful when used in a decentralized manner. However, when it becomes consolidated in an exchange or other controlling entity, the risk associated to those values will move out of line with the common consensus. For example, there are whales that move the crypto markets in wide swings to their advantage, and those centralized controls risk everything (increase risk of loss) that has gone into building the technology and applications for using it.
At the end of the day, crypto is likely only useful for one thing and that is an exchange of value and identity for AI/ML applications. Just like Splunk was search for machine data, crypto is payments for machine entities. Until that becomes a reality, the markets are just speculative and uninteresting. Ethereum especially, given no real thing occurs on that chain other than bad code and hacks that lose "investors" millions.
Lightning has been the best thing that has happened to crypto in a long time and the reason why is because it can scale Bitcoin to the numbers we need for large amounts of transactions between machine entities...
> CoinDesk reports: Just over 51%, or 24.6 million addresses of the total 47.9 million, are below purchase price on their investments, according to data provided by blockchain analytics firm IntoTheBlock. About 45% are in the money, which means they are boasting unrealized gains, while the rest are roughly at break-even.
Re: The entire crypto ecosystem is a ponzi
#84This 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…
The burden of proof is on the crypto promoters to demonstrate ability to create wealth. This was not the case up to now, the only thing crypto produced were speculative assets that have very little legitimate uses. For example, major cryptocurrencies like Bitcoin aim to replace state issued fiat currencies with privately issued currencies that have limited/fixed supply and no connection to the real economy. That's in…
> This was not the case up to now, the only thing crypto produced were speculative assets that have very little legitimate uses.
You're being straight up dishonest. Darknet Markets have been operating for over a decade now, they obviously have tons of legitimate uses and have created a plenty of wealth.
Re: The entire crypto ecosystem is a ponzi
#85Cryptocurrency in its purest is money not issued or controlled by a government. Instead the supply inflation is controlled by transparent rules that are plain to see. “Protocol-based finance” vs. the existing government-based finance. Now there are all manner of divergences from the above paragraph. Coins that are totally controlled and issued by a small group or company. Black box rules rather than transparent. Ther…
It isn't money. Money can be easily exchanged for goods and services. It is a digital "asset" whose only meaningful application is speculative trading...of itself. If something only has value because you think you can sell it to the next sucker for more, it is a ponzi scheme.
Re: The entire crypto ecosystem is a ponzi
#86The success of crypto is very strange/alien to me.
The scam seems so obvious, and yet it "works".
I guess that I tend to underestimate how many people love gambling with money and/or are attracted to get-rich-quick schemes.
There is seemingly also a small fraction of true believers, idealists and evangelists who seem convinced that all of this could replace both states and banks without ending up much worse.
Re: The entire crypto ecosystem is a ponzi
#87Earlier quoted context omitted.
Early banks failed all the time. Give it another decade or so for regulation to start mandating accountability.
Banks failed because they weren't regulated. If we regulate crypto, whole crypto premise is lost. So what's the point?
The only way crypto works is if it had stayed niche.
If (old) people loose money, they will complain, legislators will notice, regulating policy will be implemented.
There is no point. Crypto is a fantasy.
Re: The entire crypto ecosystem is a ponzi
#88No post body was provided.
Re: The entire crypto ecosystem is a ponzi
#89Crypto recreates everything Bitcoin was supposed to prevent. 1. Tether: infinite money printer central bank 2. Exchanges: banks 3. Binance: too big to fail 4. BSC shitcoins: fully centralized currency
Good thing we can just convert, and hold our own bitcoins
Re: The entire crypto ecosystem is a ponzi
#90Earlier 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.
Tell me how many BTC a new TV is going to be in two years, I'll tell you how many USD it'll be. As a stable, inflation-resistant currency, the BTC value should be easy to predict