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How about the stock market? Everyone I know that invested in stocks did so hoping to trade it back later on for more fiat than they paid.

jschwartzi 5y ago
Well the idea that stocks must go up is a kind of scheme in itself. The whole financialization of our economy is based on constant growth. So you could argue that it’s a Ponzi scheme as well. Our children will likely be caught holding the bag.
- anonporridge 5y ago
  You could argue that civilization itself is a Ponzi scheme. One day, there will be a final generation left holding the bag.
- geysersam 5y ago
  The difference is that both stocks and the general economy produces value. This is what separates them from a Ponzi which is only a redistribution of assets.
- megameter 5y ago
  "Civilization is a Ponzi" is essentially my conclusion. The thing holding up government backing as the standard of real asset is simply its capacity as the just middleman enforcer. Subtract that and currency, real estate, stocks, bonds, contracts, credit ratings and IP rights all go poof. You're left with clothes-on-your-back and local community trust. That's why I see crypto tokenization as an important step towards having another "financial material" to work with. It doesn't commandeer enforcement at a global level, so it doesn't compete with governments on their own terms, but it can help build trust at scale by being designed around the trustless scenario, which reduces reliance on enforcement and bureaucratic methodology in many applications. Crypto projects with a focus on achieving good governance are some of the most promising out there, even as they are hidden in the endless waves of scams.
lalaland1125 5y ago
Stocks produce value though. They represent shares of companies that make useful products that generate actual value. When you own a share of Apple you literally own a fraction of their factories, IP, etc.
shaklee3 5y ago
This is addressed in the article. As is gold, but it doesn't seem like people read it.

jschwartzi 5y ago

Well the idea that stocks must go up is a kind of scheme in itself. The whole financialization of our economy is based on constant growth. So you could argue that it’s a Ponzi scheme as well. Our children will likely be caught holding the bag.

anonporridge 5y ago
You could argue that civilization itself is a Ponzi scheme. One day, there will be a final generation left holding the bag.
geysersam 5y ago
The difference is that both stocks and the general economy produces value. This is what separates them from a Ponzi which is only a redistribution of assets.
megameter 5y ago
"Civilization is a Ponzi" is essentially my conclusion. The thing holding up government backing as the standard of real asset is simply its capacity as the just middleman enforcer. Subtract that and currency, real estate, stocks, bonds, contracts, credit ratings and IP rights all go poof. You're left with clothes-on-your-back and local community trust. That's why I see crypto tokenization as an important step towards having another "financial material" to work with. It doesn't commandeer enforcement at a global level, so it doesn't compete with governments on their own terms, but it can help build trust at scale by being designed around the trustless scenario, which reduces reliance on enforcement and bureaucratic methodology in many applications. Crypto projects with a focus on achieving good governance are some of the most promising out there, even as they are hidden in the endless waves of scams.

lalaland1125 5y ago

Stocks produce value though. They represent shares of companies that make useful products that generate actual value. When you own a share of Apple you literally own a fraction of their factories, IP, etc.

shaklee3 5y ago

This is addressed in the article. As is gold, but it doesn't seem like people read it.