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crypto is a ponzi scheme because liquidity in it only comes from the next sucker buying in. it’s not connected to anything that generates or has value, you can

crypto is a ponzi scheme because liquidity in it only comes from the next sucker buying in. it’s not connected to anything that generates or has value, you can only get out of your position if you can convince some one else to hold the bag. in a sense this is true of all markets but only in a very weak sense. assets linked to governments or value generating corporations will have value for the foreseeable future, you don’t have to race to find a sucker to liquidate your position

scottiebarnes 4y ago
> you don’t have to race to find a sucker to liquidate your position Whose the sucker when they tell you that limitless, growing, roll-over debt is a actually a feature of the system? Who pays the price when a government hands over billions of dollars to bailout the financial/auto/x industry? > assets linked to governments or value generating corporations will have value for the foreseeable future "foreseeable future" means whats exactly? UK pension funds were about to collapse until they were bailed out by the government. How foreseeable are events like these, wiping out people who have otherwise done nothing wrong? https://www.theguardian.com/business/2022/oct/06/bank-of-england-confirms-pension-funds-almost-collapsed-amid-market-meltdown https://www.theguardian.com/business/2022/oct/06/bank-of-eng...
- mlazos 4y ago
  So you’re suggesting we just let the financial and auto industries fail? There’s a cost to that too because once again, these industries provide value to society. Crypto provides no added value and wouldn’t even solve either of the problems you mentioned. And yes we could horribly replace our currency with it but there are zero benefits to doing that over the current system. The fact is it is not a currency and it is not a business providing value, so you are purely speculating on sentiment, hence it’s a ponzi.
  - landemva 4y ago
    The owners and creditors of auto industry can fail and the assets (factories, IP) would remain and be transferred to new owners. Bankruptcy does not disappear factories.
    - Philadelphia 4y ago
      And the owners did fail. Chrysler was transferred to Fiat in bankruptcy, and GM shareholders were wiped out
ashwagary 4y ago
Lets try some madlibs... >Real estate/stocks/bonds/gold/silver/etc is a ponzi scheme because liquidity in it only comes from the next sucker buying in. Tell me why the above statement is wrong.

scottiebarnes 4y ago

> you don’t have to race to find a sucker to liquidate your position Whose the sucker when they tell you that limitless, growing, roll-over debt is a actually a feature of the system? Who pays the price when a government hands over billions of dollars to bailout the financial/auto/x industry? > assets linked to governments or value generating corporations will have value for the foreseeable future "foreseeable future" means whats exactly? UK pension funds were about to collapse until they were bailed out by the government. How foreseeable are events like these, wiping out people who have otherwise done nothing wrong? https://www.theguardian.com/business/2022/oct/06/bank-of-england-confirms-pension-funds-almost-collapsed-amid-market-meltdown https://www.theguardian.com/business/2022/oct/06/bank-of-eng...

mlazos 4y ago
So you’re suggesting we just let the financial and auto industries fail? There’s a cost to that too because once again, these industries provide value to society. Crypto provides no added value and wouldn’t even solve either of the problems you mentioned. And yes we could horribly replace our currency with it but there are zero benefits to doing that over the current system. The fact is it is not a currency and it is not a business providing value, so you are purely speculating on sentiment, hence it’s a ponzi.
- landemva 4y ago
  The owners and creditors of auto industry can fail and the assets (factories, IP) would remain and be transferred to new owners. Bankruptcy does not disappear factories.
  - Philadelphia 4y ago
    And the owners did fail. Chrysler was transferred to Fiat in bankruptcy, and GM shareholders were wiped out

ashwagary 4y ago

Lets try some madlibs... >Real estate/stocks/bonds/gold/silver/etc is a ponzi scheme because liquidity in it only comes from the next sucker buying in. Tell me why the above statement is wrong.