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Stocks are different because stocks derive intrinsic value from non-investor participants. When a customer buys something at a store, the profit from that is sa
by arcticbull 4y ago
Stocks are different because stocks derive intrinsic value from non-investor participants. When a customer buys something at a store, the profit from that is saved in a cash account, re-invested in the business or returned to investors via dividends. Yield through dividends is no different at the limit than that money accruing to intrinsic value in the business.
Crypto only has investor participants. You cannot ever get more money out of a Bitcoin than someone else puts in buying Bitcoin. Less, actually, because you have to pay miners to operate the network.
Stocks as a whole are positive-sum due to the contributions of non-investor participants.
Futures, options and PoS crypto are zero-sum.
PoW cryptos are negative-sum due to the contributions of miners.