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The difference is that ponzi are normally offering good rate of return on the investment that are difficult/impossible to get consistently. When your company/co
by max51 4y ago
The difference is that ponzi are normally offering good rate of return on the investment that are difficult/impossible to get consistently. When your company/coin don't offer any interest on the investment, it's very easy to just buy something super safe with a return of 0.25 - 1% and pocket the profit while not touching the main capital.
Don't get me wrong, they can still be scams. The only difference is that unlike a typical ponzi, it is possible to have a sustainable and profitable business model with a stable coin.
- namdnay 4y ago> it is possible to have a sustainable and profitable business model with a stable coin. I guess it's possible, but only within the limits of the current general interest rates. there is no magic world of safe investments returning higher interest than the safest bonds
- gruez 4y agoNote that all the parent post claimed was "profitable", without specifying how profitable. Thus unless interest rates go to zero, it should still be profitable. Negative interest rates has happened with some currencies, but for USD it has yet to happen.
- max51 4y agoI don't know how much people is required to run that type of operation, but even 0.5% can pay for a lot of people when you are sitting on a pile of cash worth >20B.