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The problem is that it's not money thrown at it directly. When you pay a company, they can use that money directly. When you buy some coins, the developers/th
by Fradow 8y ago
The problem is that it's not money thrown at it directly.
When you pay a company, they can use that money directly.
When you buy some coins, the developers/the company generally do not benefit directly. Some developers don't even have stake in the coins they create to avoid conflict of interest.
Who profit then? People who already have some of those coins, because you drive up the valuation, and they can resell their coin for higher. Those people can be scammers (pump & dump scheme), cryptocurrencies, your average joe, or the devs, if they got some. You could say, apart from the last category, that they add nothing of value.
Some cryptocurrencies try to have a part of the generated currency pay toward development effort, but that's not the standard.