4 ms·

>Crypto cannot create wealth, only move it around. If too many people become crypto-rich... Not really understanding this. If crypto is just moving wealth arou

• deleted 4y ago
  [deleted]
• nradov 4y ago
  The “too many" part is obviously subjective, but cryptocurrencies are all just zero-sum trading vehicles similar to Ponzi schemes. Unlike real businesses which expect natural resources or build things, there is no new wealth being created in cryptocurrency. Mathematically, only a minority of participants can ever get rich. The majority of participants are suckers who will be left holding worthless coins when bubbles pop. Of course that could take many years, so in the meantime traders who are lucky enough to time the markets correctly can make huge profits.
  • unclebucknasty 4y ago
    In your previous comment, you wrote: >If too many people become crypto-rich and try to spend it on real-world assets, the assets will just inflate in price. My point was that your logic is flawed. If crypto just moves wealth around vs creating it, as you also assert, then it won't materially change the number of wealthy people. Hence, it wouldn't be a mechanism for causing the inflation you predict.