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Stocks generate rent and so do houses. That is why these things can continue to grow in value without being called ponzi schemes, though there are certainly spe
by cuteboy19 5y ago
Stocks generate rent and so do houses. That is why these things can continue to grow in value without being called ponzi schemes, though there are certainly speculative phases for both. To compare these things with cryptocurrency is to show a profound misunderstanding of investment. Cryptocurrency does not generate any rent, the sole reason you buy Bitcoin is because you think you might find a greater fool to buy it from you for a higher price. This is identical to how ponzi schemes function
- lgrapenthin 5y agoCryptocurrencies do generate rent. You can lend them and collect interest on it. Houses don't grow in value because they generate rent - they are deteriorated by residents and need permanent investment in repairs to hold their value. Instead, they grow in value if their environment and surrounding infrastructur improves because more people will want to live there and offer a higher price. Likewise, if more merchants accept a coin, the coin is more valuable because its more flexible.