3 ms·
Well so far it’s anything but zero sum. From nothing to tens of thousands of dollars in 10yrs is not zero sum. It’s highly volatile yes, and has lost >= 80% o
by SkyMarshal 5y ago
Well so far it’s anything but zero sum. From nothing to tens of thousands of dollars in 10yrs is not zero sum.
It’s highly volatile yes, and has lost >= 80% of its value four times in those ten years (so this little 30% dip is nothing by comparison). But not zero sum.
It originally mainly appealed to two factions: techies who like disrupting big things from first principles, and people who were long concerned with the mechanics of government fiat money and central banks [1]. There was some overlap between those two groups, and they were the innovators and early adopters.
Interest has since expanded to investors of all kinds due to its, so far, non-zero-sum aspect.
But if you’re not interested in the mechanics of how money works, it’s not surprising Bitcoin or cryptocurrency won’t be of interest to you.
Also, Bitcoin has aspects of both currency and commodity (and possibly security, though the US SEC has said they don’t consider it that). It’s impossible to categorize based on previous definitions for this reason. Try not to get caught up in debating whether it’s one of these things, because it’s a mix of both (or maybe all three). So many people drive themselves crazy trying to define it as a currency, or arguing against it as a currency, but that’s just a mental tar pit.
[1]:One well-researched take: https://en.wikipedia.org/wiki/Princes_of_the_Yen https://en.wikipedia.org/wiki/Princes_of_the_Yen
- alimw 5y agoWhen it began it was worth nothing and when it ends it will be worth nothing. Zero sum.
- tlb 5y agoHowever, it will have transferred a lot of money from people who are bad at predicting the future to people who are good at predicting the future. This is good for the economy, because more capital is in the hands of people who are likely to invest in things that work.
- alimw 5y agoWell we know the people who lose significant money will be a strict subset of people who are greedy. Maybe that's a good thing? More seriously, study after study has shown that unless you take the fundamentals into consideration there is no way reliably to make money on the stock market, and certainly that will be the case for Bitcoin for which there are, amazingly, no fundamentals. The exception would be if you were, say, a person who can manipulate the market with tweets and with large purchases through a publicly owned company that you control.
- tacitusarc 5y agoIt's technically negative sum as it costs energy and results in no value, not even a painting you can hang on your wall.
- 8note 5y agoWhat's the definition you're using for zero-sum? Usually the definition is about the amount of value being conserved, rather than having to do with the total amount of value passing through