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You're confused. In The Ethereum Ponzi, early token holders 'stake' their tokens and are paid by future transactors. But here's the funny thing that no-one ge
by RC_ITR 4y ago
You're confused. In The Ethereum Ponzi, early token holders 'stake' their tokens and are paid by future transactors.
But here's the funny thing that no-one gets: all assets are a ponzi scheme (stocks are only worth something now because future rubes will buy them for more later), what makes bad ponzi schemes is when the underlying asset that everyone is speculating on doesn't do anything useful.
- mgraczyk 4y agoBut no, that's not the same. If the owners of a stock received a fee when somebody used the company's product, that wouldn't be a "ponzi". It lacks the key element that earlier investors are paid via the investments of future investors. That's just not what happens on Ethereum.
- everfree 4y agoEdit: Was replying to comments too fast, misread what I was replying to.
- mgraczyk 4y agoThe people paying a fee are not investors. This is like saying the grocery store is a ponzi because customers pay the shop owner, who was an early investor. The people paying a fee do not expect to make a profit off of holding ethereum. (Some of them do, but that's a coincidence in the same way that a shop owner might shop at their own store).
- RC_ITR 4y ago> It lacks the key element that earlier investors are paid via the investments of future investor. Are you under the impression that you can buy Ethereum without paying transaction fees to stakers?
- mgraczyk 4y agoI am, because it's true. For example I own a lot of Ethereum and didn't pay any transaction fees to obtain it. Most ETH transactions work this way because they happen on centralized exchanges.
- RC_ITR 4y ago>Most ETH transactions work this way because they happen on centralized exchanges. Well then what does Ethereum do actually? And why exactly can't those centralized transactions be denominated in "Coinbase points" without all the crazy "Proof-of" code?
- mgraczyk 4y agoBecause if Coinbase did that, nobody would use them, but people do use Ethereum. Btw, Binance has done this with BNB and their USD stable coin, and they are top ranked coins by market cap, so in fact sometimes it is the case that having a highly centralized and liquid coin backed by a major player is good enough.
- RC_ITR 4y ago>Because if Coinbase did that, nobody would use them, but people do use Ethereum. And that doesn't feel anything like a ponzi scheme to you? Because, again, as you state, people are not using Ethereum (that would require paying fees to old investors) they are buying it (in hopes that they aren't too late to become an old investor themselves). Or are you literally saying that the value of ETH is that "Aesthetically, it's nicer to see 'ETH' at the end of an account balance than it is to see 'USD'"?
- mgraczyk 4y agoWhat? No that's not what I said at all. People are using Ethereum, they are paying transaction fees to use it. Those fees mostly do not go to stakers, they are mostly burned. Even if that weren't the case, it's not even close to a ponzi because the stakers aren't paid out by future stakers, they are paid out by diluting everyone and via fees for usage. Also to address your second point, I'm not saying that, but that would not make it a ponzi at all. Art has this property, art isn't a ponzi.
- Arcuru 4y ago> stocks are only worth something now because future rubes will buy them for more later Stocks are valuable because they are a claim on the assets and future profits of a company, as well as a claim on the ownership and control of the company. Some people buy stocks just in the hope that a Greater Fool will buy them for more money later, but that's not the same thing as calling stocks in general a "ponzi scheme".
- RC_ITR 4y ago>what makes bad ponzi schemes is when the underlying asset that everyone is speculating on doesn't do anything useful. Also, what's your comment on the multiples expansion that all stocks have seen since the 1990's?