3 ms·

> All profits anyone makes on cryptocurrencies comes out of the pockets of other "investors". That's not necessarily true. It's the same as the stock market. I

> All profits anyone makes on cryptocurrencies comes out of the pockets of other "investors". That's not necessarily true. It's the same as the stock market. I could buy a stock or crypto token/coin for $1 and sell it for $2, while the person I bought it from paid less than $1 and the person who bought it from me sold it for more than $2. In other words, all three of us made money. There's also the possibility that the other two parties lost money. But there's nothing unethical about buying something for a price someone is willing to sell it for or selling at a price where someone else is willing to buy it. I mean, not unless you think capitalism as a whole is unethical.

lottin 5y ago
> In other words, all three of us made money. Yes, the three of you made money, but you're forgetting about the fourth investor. The fourth investor won't make money until a fifth investor comes and buys the coin. And so on, and so on. The revenue received by each investor always comes from a subsequent investor. So the OP was right. This is not true of stocks, as stocks do generate income.
- bonestamp2 5y ago
  > Yes, the three of you made money, but you're forgetting about the fourth investor. I didn't forget. That fourth investor is not part of my transaction. The point of my comment was that OP's claim that all crypto profits come from someone else's pocket is false. Just like non-dividend stocks, sometimes that's true, and sometimes it's not. As I stated, it's possible that my seller and buyer could lose money too. The same is true for stocks. > This is not true of stocks, as stocks do generate income. Yes, dividend stocks generate income for their investors, but not all stocks pay dividends. On that note, some crypto coins/tokens pay distributions and interest too (let's call them dividend crypto for simplicity). Are non-dividend stocks equal to non-dividend crypto? In both cases, profit can only be realized by the investor when the share/coin/token price goes up. Is that ok? I think any Capitalist should say yes. I'm not advocating for stocks or crypto, but there are some similarities that we have to acknowledge to avoid hypocrisy.
  - lottin 5y ago
    > The point of my comment was that OP's claim that all crypto profits come from someone else's pocket is false. Yes, but your comment didn't contradict the OP's claim. The fact that an investor in cryptocurrency may not make a profit doesn't contradict the claim that all profits made by crypto investors come from later crypto investors. And this is only similar to stocks superficially. Yes, some stocks don't generate an income, but a stock is claim on the company's equity and non-distributed profits are automatically integrated into equity. In a well-functioning market, the market price of the stock will adjust accordingly. Therefore it makes no difference whether the profits are distributed or not. What makes a difference is whether the underlying business is profitable. This is not to say that the stock market isn't susceptible to bubbles and speculation. Of course it is, but what sustains a stock's value is not speculation but an underlying business activity.

lottin 5y ago

> In other words, all three of us made money. Yes, the three of you made money, but you're forgetting about the fourth investor. The fourth investor won't make money until a fifth investor comes and buys the coin. And so on, and so on. The revenue received by each investor always comes from a subsequent investor. So the OP was right. This is not true of stocks, as stocks do generate income.

bonestamp2 5y ago
> Yes, the three of you made money, but you're forgetting about the fourth investor. I didn't forget. That fourth investor is not part of my transaction. The point of my comment was that OP's claim that all crypto profits come from someone else's pocket is false. Just like non-dividend stocks, sometimes that's true, and sometimes it's not. As I stated, it's possible that my seller and buyer could lose money too. The same is true for stocks. > This is not true of stocks, as stocks do generate income. Yes, dividend stocks generate income for their investors, but not all stocks pay dividends. On that note, some crypto coins/tokens pay distributions and interest too (let's call them dividend crypto for simplicity). Are non-dividend stocks equal to non-dividend crypto? In both cases, profit can only be realized by the investor when the share/coin/token price goes up. Is that ok? I think any Capitalist should say yes. I'm not advocating for stocks or crypto, but there are some similarities that we have to acknowledge to avoid hypocrisy.
- lottin 5y ago
  > The point of my comment was that OP's claim that all crypto profits come from someone else's pocket is false. Yes, but your comment didn't contradict the OP's claim. The fact that an investor in cryptocurrency may not make a profit doesn't contradict the claim that all profits made by crypto investors come from later crypto investors. And this is only similar to stocks superficially. Yes, some stocks don't generate an income, but a stock is claim on the company's equity and non-distributed profits are automatically integrated into equity. In a well-functioning market, the market price of the stock will adjust accordingly. Therefore it makes no difference whether the profits are distributed or not. What makes a difference is whether the underlying business is profitable. This is not to say that the stock market isn't susceptible to bubbles and speculation. Of course it is, but what sustains a stock's value is not speculation but an underlying business activity.