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> Clearly, the coins have value because someone out there feels like paying money for them. That's not a great definition of worth. Is the correct value for a
by wpietri 5y ago
> Clearly, the coins have value because someone out there feels like paying money for them.
That's not a great definition of worth. Is the correct value for a Ponzi scheme really determined by the most recent dollar they took in? I'd say not.
- wizzwizz4 5y agoIt's the main definition of worth that is used when discussing the value of commodities in economics on the internet.
- wpietri 5y agoI certainly agree that worth and current market price are correlated. But I disagree that they're definitionally the same. Indeed, pretending they're equivalent is a great way to lose a lot of money. I used to work for financial traders and I got some very fat bonus checks paid for by people who confused the two during high-volatility events while our traders stayed more flexible.
- wizzwizz4 5y agoI also agree that it's a bad definition. Perhaps “worth is what people will pay for something for the sake of having it, rather than out of expectation that they can re-sell it for more”?
- zsmi 5y ago> Is the correct value for a Ponzi scheme really determined by the most recent dollar they took in? I wouldn't say a Ponzi scheme should be valued by this dollar. It should be valued by the next dollar that someone is willing to put into it as the whole point of the Ponzi scheme is to gather the next dollar.