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People need gold for its properties. As the number of people grows faster than the available amount of gold, its value goes up. Crypto tokens are not needed for
by lern_too_spel 5y ago
People need gold for its properties. As the number of people grows faster than the available amount of gold, its value goes up. Crypto tokens are not needed for anything because they are inferior to alternatives for all the purposes they have been applied to. More people needing 0 tokens means the value of the tokens should remain 0.
- brian_cloutier 5y agoWell, now you're arguing a different point. Are you saying that your definition of ponzi really included an implicit third term? Ponzis are not ponzis when they involve an asset with intrinsic value? That doesn't seem right. In any case, here's another counterexample. People need ETH for its properties. Ethereum is necessary for payment for the execution of Ethereum smart contracts, which provide a service with no predecessor. You might disagree with me about the utility of the service that they provide, but there really is no pre-crypto smart contract alternative.
- lern_too_spel 5y agoWhy doesn't it seem right? The ponzi derives its value solely from new entrants paying older entrants' withdrawals. The smart contract itself has zero value because non-crypto alternatives are cheaper and actually enforceable.
- brian_cloutier 5y agoYou are very sure there is nothing of value here, and you have no reason to trust me, so there's not much more to be said. Some day you might find someone you kind of trust who tells you that no, there really is something to this crypto thing. I hope this comment helps push you over the threshold of giving it a shot and looking into smart contracts. There is a lot of noise but once you get through the noise there really is a lot of cool and actually useful stuff happening with smart contracts, you'll be pleasantly surprised.