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Technically everything is a ponzi scheme based on the assumption that it correlates with world GDP growth. Land, Homes, Gold, Stocks are all Ponzi. It's just t
by deltree7 4y ago
Technically everything is a ponzi scheme based on the assumption that it correlates with world GDP growth.
Land, Homes, Gold, Stocks are all Ponzi. It's just that the duration of the scheme is longer. If an asteroid hits and kill all humans tomorrow except 100 people, those 100 people can get all the above 'assets' for $0.
E.g The Gold Scheme has lasted over 5,000 years. Who is to say that BTC will not last at least 50. As an investor, it's not whether something is a ponzi or not, but how long the scheme will last.
For something like land, it could well be till the population peaks or Metaverse makes land less valuable or we find another amazing planet where we can all instantly migrate to. But eventually the land that you own will have no value. When is the question, till then you'll keep buying land in the hope of selling it to someone else for a higher value
- 0xmarcin 4y agoWith the small exception that homes, land and stocks (at least some of them) can pay you rent. I personally like to think of Gold as of Babylonians Bitcoin, it has very little value of its own - but it has a long history of being a store of value (like 5k years vs Bitcoin's 5k days). So at least in this case we have a lot of track record that Gold works. Beside Gold, silver was also used for monetary purposes, but with time it lose its role - as more and more silver was produced as e.g. side product of copper mining. Countries that were relying on silver as the store of value (China) where hit very hard by silver inflation. Time will show if Bitcoin is a bubble, cyber silver or cyber gold. I personally would be interested in having stable coin based on Gold, that would basically mean return of the gold standard. But in that case we have to trust some institution to keep all that gold safe...