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Exactly. The stock market is positive sum, since companies on average create more value than they destroy. Bitcoin, though, is negative sum, since no new value
by NickM 4y ago
Exactly. The stock market is positive sum, since companies on average create more value than they destroy. Bitcoin, though, is negative sum, since no new value is created and value is actively destroyed via mining.
Investing in BTC is like buying shares of stock in a company that produces nothing and has high ongoing costs that are only paid for by continuing to issue new shares.
- fragsworth 4y agoThe existence of an online alternative to gold is potentially valuable (also potentially harmful but I would say the jury is still out), and it's hard to say if mining rewards counteract that.
- three_seagrass 4y agoIt's investing in the confidence of the future of a network that can only handle 7 transactions a second, at the expense of a small country's use of electricity.