3 ms·

This is basically the same equation if you replace "crypto" with "startup". The multiple investment rounds followed by eventual IPO is typically just a legal p

• cuteboy19 4y ago
  If it is not a viable business (eg We work) the IPO will fail and the VCs would be left holding the bag. Businesses make money from customers. Ponzis shuffle around capital from late investors to early investors
  • z9znz 4y ago
    Uber
    • arcticbull 4y ago
      Uber makes revenue from customers. Not all investments are good investments but the fact remains that businesses have non-investor participants from which the goal is, in the full course of time, to extract profits. While specific equities may be bad investments, equities in aggregate are positive-sum because investors aim to extract profit from non-investor participants. They may fail! But that doesn't change the goal. This is not the same as a cryptocurrency which relies solely on later investors to create returns for earlier investors. There are no non-investor participants from which profits can be derived, period. Cryptocurrencies are in aggregate either zero-sum (best case, PoS) or massively negative-sum (worst case, PoW, especially Bitcoin). This represents a pretty fundamental misunderstanding of, well, investing.
      • ChainOfFools 4y ago
        Even PoS is negative sum; developing and hosting nodes isn't free, to say nothing of human capital wasted on attention diverted toward a rube goldberg ponzi lottery in any capacity, right down to this hastily composed reply to your post.
        • deleted 4y ago
          [deleted]