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> It relies entirely on someone else coming along later and paying more Yes, just like any part of the economy. Scarcity and/or productivity is why someone pay
by shtopointo 4y ago
> It relies entirely on someone else coming along later and paying more
Yes, just like any part of the economy. Scarcity and/or productivity is why someone pays: either something, or more for it.
If it's BTC, the theory is it will be scarce, like gold.
If it is one of the other crypto coins, it has to be productive like e.g. this app enabling sharing internet with others.
- saalweachter 4y agoThe S&P 500 pays out over a trillion dollars each year in dividends and stock buybacks funded by the profits of their productive economic activity. This is what you are investing in when you buy a stock. The numbers-go-up of the stock market is both directly (through stock buybacks) and indirectly (through expectations of future dividends) a consequence of this productive activity, not just greater fools.
- shtopointo 4y agoWe don't disagree. A crypto coin can be that too – stock in a company.