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So all investments which do not generate revenue are Ponzis then? What about precious metals - the by far number one use case for that material is sitting in a
by mattwilsonn888 5y ago
So all investments which do not generate revenue are Ponzis then? What about precious metals - the by far number one use case for that material is sitting in a vault to hedge inflation.
- root_axis 5y agoNo, you misunderstand. A business that fails to generate revenue is not a ponzi because the money invested into it is used to grow the business, the investment risk is based on the business fundamentals, unlike cryptocurrencny where the amount of money invested into it has no relationship to its capabilities.
- mattwilsonn888 5y agoWith all due respect you misunderstood my own attempt to generalize. By your definition gold or fiat currencies are also Ponzis. > ...unlike cryptocurrencny where the amount of money invested into it has no relationship to its capabilities. The most fundamental thing about Bitcoin is that its price has a direct relationship to network security, which affects how soon you can be confident new blocks will not be out-mined - a clear value. If you don't believe me simply look up a chart comparing Bitcoin hashpower to its price.