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Why does someone need a deeper understanding of intrinsic value if the shallow understanding does reflect a Ponzi-like scheme? Not having a deep understand does
by loceng 9y ago
Why does someone need a deeper understanding of intrinsic value if the shallow understanding does reflect a Ponzi-like scheme? Not having a deep understand doesn't negate what exists at a shallow understanding; "it's the colour red," "actually, it's rose coloured."
Edit: And if the Ponzi-like scheme is what the problem is, why isn't then the community solving for that? The easy answer is that then adoption is difficult, because if you have a Ponzi-like scheme it is much easier to attract VC money, likely the money of bad actors more easily, etc. Yes, that hyper-incentive of the Ponzi-like scheme does get people working together, more quickly, whereas having a normal or no incentive (the incentive being the value of a public ledger) then it will grow at an intrinsic pace.
- csomar 9y agoMy understanding of a ponzi-scheme is that you subscribe with an initial capital with a regular currency; and then you expect regular payouts in that same currency. The regular payouts pay a lot comparing to what the market pays for no-risk assets. I don't think bitcoin fits that definition.
- loceng 9y agoHence why I generally try to say Ponzi-like scheme. It doesn't fit exactly. The bad actor in a Ponzi scheme, the single issuer would be the stock broker, however in the case of a crypto-asset would be the crypto-asset itself, e.g. Bitcoin, Ethereum's Ether. And then there are the owners of those assets who are doing the promoting to get people to adopt it and hoping people will pay X amount more for it than they paid. This is too shallow of an explanation anyhow. I believe I have left longer comments relating to it on HN, though they may not fully describe all of the problems with it.