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When has "market cap" been a measure of a currency? This is indicative of the logical fallacy so common in these debates, conflating "store of value" with "usef
by ryandamm 5y ago
When has "market cap" been a measure of a currency? This is indicative of the logical fallacy so common in these debates, conflating "store of value" with "useful mechanism for transactions."
It's a Ponzi scheme. There's no inherent underlying value, its "market cap" is strictly a function of more dumb money flowing into the system. Occam's razor, this is the most likely explanation for everything in the crypto space; the model makes sense and explains a lot more than "a new financial asset" hokum.
- exdsq 5y agoDepends if you view them as stocks or currencies, no? If it’s stocks then market cap is normal. Anyhow, if it was a giant Ponzi scheme then what about the projects ran by JP Morgan/Visa/Deloitte/etc? I have no doubt some projects are scams, but there are also non-ponzi projects and I don’t agree with painting them all with the same brush.