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I disagree. You are right that the characteristic of a ponzi is that funds from new investors are used to pay existing investors. But that is also a characteri
by FabHK 4y ago
I disagree. You are right that the characteristic of a ponzi is that funds from new investors are used to pay existing investors.
But that is also a characteristic of crypto. You cannot buy anything for crypto without exchanging it for fiat, and for that you need a new investor to give you fiat for your cryptos. If all exchanges (incl. informal ones) close tomorrow, any crypto you hold is worthless.
Now, you could say that the same holds true for shares or real estate. But that is wrong. You can hold shares you bought ad infinitum, even if all stock exchanges close tomorrow, and would still receive your money's worth (approximately) in the form of dividends of the underlying company, or proceeds from the sale of said company, without ever selling those shares. You can live in a house or rent it out, and get your money's worth, without ever selling the house to someone else.
I don't see how you can get your money's worth with crypto without ever selling it to someone else.
- mlyle 4y ago> I don't see how you can get your money's worth with crypto without ever selling it to someone else. Which is a characteristic it shares with fiat currency. Of course, fiat currency has people with guns making you accept it as payments for debts.
- FabHK 4y agoYes, and everyone must pay their taxes in fiat, which renders it valuable. Unlike crypto.
- landemva 4y ago>> everyone must pay their taxes in fiat Colorado is different. https://thehill.com/changing-america/resilience/smart-cities/596526-colorado-will-start-accepting-cryptocurrency-for-tax/ https://thehill.com/changing-america/resilience/smart-cities...
- tomputer 4y agoBitcoin is more like holding a piece of gold. If all gold exchanges are closed you can still trade your gold with someone in person. You don’t get your money without ever selling your piece of gold to someone else.
- FabHK 4y agoYou can also make jewellery and tooth fillings and platings for electric contacts with gold. Not with crypto.
- mlyle 4y ago> You can also make jewellery and tooth fillings and platings for electric contacts with gold. Not with crypto. Most of gold's value is because it's perceived as valuable. The industrial uses, etc, are small. Jewelry is a way to flaunt this value as ornamentation.
- tomputer 4y agoThe parent post was about trading/selling crypto for money without exchanges. Gold has indeed some other use cases. It is however not possible to send physical gold over the internet. Gold is also difficult to verify. You'll probably need to rely on a broker/shop and their tools to test if it's real. Bitcoin is relatively easy to verify with software anyone can download for free.