5 ms·

If you can explain how cryptocurrencies like BTC or ETH are a pyramid scheme while stocks like AAPL or TSLA aren't, I'd love to hear it.

astrange 5y ago
AAPL pays dividends in another currency. TSLA theoretically could, plus they can repurchase shares anytime they want. (Or issue new ones, since their shareholders seem desperate to give them money.)
- SparkyMcUnicorn 5y ago
  Just like some cryptocurrencies (yes, some pay in something other than what you're holding). And some of them are even deflationary. Some cryptocurrencies buy and and burn, others have a DAO that buys assets and holds the assets in a treasury.
  - astrange 5y ago
    I agree that since you can reproduce all tradfi structures as cryptocurrencies, that means some cryptocurrencies aren't scams. But if so, they might be unregistered securities.
Centigonal 5y ago
I would argue that, while both crypto and stocks are speculative assets whose value continues to grow due to greater fool theory, stocks either pay dividends or come with the expectation of eventually paying dividends. This means at least part of the value of a share of stock can be accounted for as the summed present value of all future dividends from that share. Most crypto assets don't pay dividends, and those that do usually pay by devaluing the currency through some staking scheme, instead of by extracting profit by selling something valuable to people. Given those premises, I'd argue that stocks like AAPL or TSLA are part speculative asset (what you're calling a Ponzi scheme), while most crypto is all speculative asset.
- SparkyMcUnicorn 5y ago
  I answer some of this in other comments. > Given those premises, I'd argue that stocks like AAPL or TSLA are part speculative asset (what you're calling a Ponzi scheme), while most crypto is all speculative asset. So you're just placing cryptocurrency in the same bracket as a stock that is more iffy than AAPL or TSLA? I do appreciate your use of "most" instead of "all".
bombcar 5y ago
If you bought every BTC you'd have a monopoly on .... what exactly? But if you bought every share of TSLA or AAPL you could at least make the company do something.
- SparkyMcUnicorn 5y ago
  Are you familiar with PoS or DAOs? I feel like these answer your question, including making an organization do something. For BTC specifically, having a monopoly would be similar to having a monopoly on an asset. Either people want it and pay you whatever you ask for it, or nobody wants it and you're left with a bunch of worthless diamonds/gold/property/bitcoin.
deleted 5y ago
[deleted]

astrange 5y ago

AAPL pays dividends in another currency. TSLA theoretically could, plus they can repurchase shares anytime they want. (Or issue new ones, since their shareholders seem desperate to give them money.)

SparkyMcUnicorn 5y ago
Just like some cryptocurrencies (yes, some pay in something other than what you're holding). And some of them are even deflationary. Some cryptocurrencies buy and and burn, others have a DAO that buys assets and holds the assets in a treasury.
- astrange 5y ago
  I agree that since you can reproduce all tradfi structures as cryptocurrencies, that means some cryptocurrencies aren't scams. But if so, they might be unregistered securities.

Centigonal 5y ago

I would argue that, while both crypto and stocks are speculative assets whose value continues to grow due to greater fool theory, stocks either pay dividends or come with the expectation of eventually paying dividends. This means at least part of the value of a share of stock can be accounted for as the summed present value of all future dividends from that share. Most crypto assets don't pay dividends, and those that do usually pay by devaluing the currency through some staking scheme, instead of by extracting profit by selling something valuable to people. Given those premises, I'd argue that stocks like AAPL or TSLA are part speculative asset (what you're calling a Ponzi scheme), while most crypto is all speculative asset.

SparkyMcUnicorn 5y ago
I answer some of this in other comments. > Given those premises, I'd argue that stocks like AAPL or TSLA are part speculative asset (what you're calling a Ponzi scheme), while most crypto is all speculative asset. So you're just placing cryptocurrency in the same bracket as a stock that is more iffy than AAPL or TSLA? I do appreciate your use of "most" instead of "all".

bombcar 5y ago

If you bought every BTC you'd have a monopoly on .... what exactly? But if you bought every share of TSLA or AAPL you could at least make the company do something.

SparkyMcUnicorn 5y ago
Are you familiar with PoS or DAOs? I feel like these answer your question, including making an organization do something. For BTC specifically, having a monopoly would be similar to having a monopoly on an asset. Either people want it and pay you whatever you ask for it, or nobody wants it and you're left with a bunch of worthless diamonds/gold/property/bitcoin.

deleted 5y ago

[deleted]