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These are common misconceptions from speculators. 1. Crypto-assets like Bitcoin/Ethereum/Steller/Ripple, etc, are created simply by typing some numbers into a

by 0wing 9y ago

These are common misconceptions from speculators. 1. Crypto-assets like Bitcoin/Ethereum/Steller/Ripple, etc, are created simply by typing some numbers into a piece of software. There's no underlying value, it's a number in a database. 2. Stocks have measurable value, https://en.wikipedia.org/wiki/Price%E2%80%93earnings_ratio https://en.wikipedia.org/wiki/Price%E2%80%93earnings_ratio 3. Anytime someone sells a Bitcoin or whatevercoin it requires a buyer. Similar to baseball cards, beanie babies, or other artifitially scarce yet easy to produce asset, the market is subject to supply and demand. In the case of cryptocoins, the supply is created and distributed to a small group of users who horde it, in the hope that new users will come in and purchase the coins for more than it cost to create them. This is a hallmark of a typical pyramid scam, which collapses once no more investors can be found, leaving the late adopters holding now worthless "coins". 4. Stocks in Amazon and businesses grant you legal rights, and if the company goes bankrupt you are entitled to compensation from their assets.

JohnJamesRambo 9y ago
How long do you think Amazon's stock price would stay high if no new investors could be found? Don't dig too deep into what separates stocks and government issued fiat currency from pyramid schemes or what you find will trouble you. In many ways, crypto is the safer of the two. A finite amount of bitcoin will be created, can you say the same for the US dollar? My view is that everything is a pyramid scheme from the first wampum and beads that were traded by humans on down the line to where we are now. The difference is crypto is a chance to get in at the top for once. That chance was missed ages ago by our generation with regard to the US dollar.
- Lewton 9y ago
  > How long do you think Amazon's stock price would stay high if no new investors could be found? If, in your hypothetical example, the reason there were no buyers was completely unrelated to the performance of Amazon as a company And the price of Amazons stocks dropped enough, eventually it would reach a point where Amazon would start buying its stocks back as it would be financially nonsensical to not do so
- 0wing 9y ago
  The difference is crypto is a chance to get in at the top for once. Not if you buy other cryptocoins like Bitcoin or Ethereum that someone else created for nothing to sell to bagholders. All you're doing there is becoming a late adopter and you must pray you're not too late in the pyramid that you'll be able to sell to some other speculator at a price higher than you bought meanwhile you're at a 1000x-10,000x disadvantage to anyone who acquired the coin for pennies/fractions of the cost to you. Simple game theory. Anyone who wants to just needs to create their own crypto-asset and market it like the others to convince "speculators" it's worth purchasing. Notice how bitcoin/cryptocoin advocates tell others to "HODL" - psychological manipulation is needed to maintain the artificial market scarcity as there's no real demand, use, or acceptance from retailers. [1] If you're genuinely concerned about control of the money supply, you would voice concern about how cryptocoins are majority owned by only a few hundred people [2] and because of how tether [3] has been marketed and used on exchanges it's essentially like the federal reserve of cryptocurrencies except it's just 2 guys and it's alleged to be backed by nothing which could mean they're stealing large amounts of cryptocoins. Given all the theft in the cryptocoin system, one might wonder if regulations and security standards exist for a reason. What happens if thieves become the majority wealth holders of all the cryptocoins? [1] https://stripe.com/blog/ending-bitcoin-support https://stripe.com/blog/ending-bitcoin-support https://steamcommunity.com/games/593110/announcements/detail/1464096684955433613 https://steamcommunity.com/games/593110/announcements/detail... [2] http://www.businessinsider.com/bitcoin-inequality-2014-1 http://www.businessinsider.com/bitcoin-inequality-2014-1 [3] https://medium.com/@bitfinexed/ https://medium.com/@bitfinexed/

by 0wing 9y ago

JohnJamesRambo 9y ago

How long do you think Amazon's stock price would stay high if no new investors could be found? Don't dig too deep into what separates stocks and government issued fiat currency from pyramid schemes or what you find will trouble you. In many ways, crypto is the safer of the two. A finite amount of bitcoin will be created, can you say the same for the US dollar? My view is that everything is a pyramid scheme from the first wampum and beads that were traded by humans on down the line to where we are now. The difference is crypto is a chance to get in at the top for once. That chance was missed ages ago by our generation with regard to the US dollar.

Lewton 9y ago
> How long do you think Amazon's stock price would stay high if no new investors could be found? If, in your hypothetical example, the reason there were no buyers was completely unrelated to the performance of Amazon as a company And the price of Amazons stocks dropped enough, eventually it would reach a point where Amazon would start buying its stocks back as it would be financially nonsensical to not do so
0wing 9y ago
The difference is crypto is a chance to get in at the top for once. Not if you buy other cryptocoins like Bitcoin or Ethereum that someone else created for nothing to sell to bagholders. All you're doing there is becoming a late adopter and you must pray you're not too late in the pyramid that you'll be able to sell to some other speculator at a price higher than you bought meanwhile you're at a 1000x-10,000x disadvantage to anyone who acquired the coin for pennies/fractions of the cost to you. Simple game theory. Anyone who wants to just needs to create their own crypto-asset and market it like the others to convince "speculators" it's worth purchasing. Notice how bitcoin/cryptocoin advocates tell others to "HODL" - psychological manipulation is needed to maintain the artificial market scarcity as there's no real demand, use, or acceptance from retailers. [1] If you're genuinely concerned about control of the money supply, you would voice concern about how cryptocoins are majority owned by only a few hundred people [2] and because of how tether [3] has been marketed and used on exchanges it's essentially like the federal reserve of cryptocurrencies except it's just 2 guys and it's alleged to be backed by nothing which could mean they're stealing large amounts of cryptocoins. Given all the theft in the cryptocoin system, one might wonder if regulations and security standards exist for a reason. What happens if thieves become the majority wealth holders of all the cryptocoins? [1] https://stripe.com/blog/ending-bitcoin-support https://stripe.com/blog/ending-bitcoin-support https://steamcommunity.com/games/593110/announcements/detail/1464096684955433613 https://steamcommunity.com/games/593110/announcements/detail... [2] http://www.businessinsider.com/bitcoin-inequality-2014-1 http://www.businessinsider.com/bitcoin-inequality-2014-1 [3] https://medium.com/@bitfinexed/ https://medium.com/@bitfinexed/