By God crypto is stupid
Imo it’s about as stupid as the ASX, and the rest of the stocks markets for that matter
All of those things are linked to assets that actually exist, and produce something. Their value is based on the tangible thing that is produced.
Bitcoin is based on how many crypto lock scams were successful in getting the ransom paid this month, and how much dirty money a crime syndicate needed laundering.
On the one hand Wesfarners pays a divided for every stock you own, and has for as long as I can remember actual money and each stock your own of the business has increased becase their profits and dividends have increased
Unless you are loaning your bitcoin out to an exhange, which means you have no ownership any longer and near zero legal protection, then it’s nothing
That said, I’d agree a bitcon is no different to say a Berkshire Hathaway share in that respect both relying on the greater fool theory of investment.
A stock dividend is something tangible – it’s not an earnings projection; it’s something solid, in hand. A stock dividend is a true return on the investment. Everything else is hope and speculation – Richard Russell
elaborate
Tell me what the value of a dollar is based upon.
We allow bits of worthless plastic and metal, and electronic bits to ‘pay’ for real goods and services.
You allow your employer to transfer electronic bits to a digitally stored ‘bank account’ for your hard work and labour.
Maybe that’s because everyone just trusts or believes it has value. There are plenty of examples in history where a currency crashed because people lost faith in it’s value.
If you want to explore some other areas, look into barter vs currency, the gold standard, money creation and how the commercial banks create money via deposits, and the Reserve Bank creates money for the government.
so your issue is with fiat money and basically the entire modern monetary system… nice
I still don’t understand how a literal ponzi is as stupid as fiat money but you do you
Don’t force assumptions on me. I have no issue with fiat or other ‘money’. Or property, or investments.
Ahh, my friend, forget ponzi. Explain economics to me.
Or, alternatively, explain how ‘traditional’ investments or property or fiat differ from a ponzi.
‘Elaborate’. I’ll wait.
I don’t know if you mean to come across like a profound philosopher whos stumbled onto a great secret that makes all economics? digital currency? fiat currency? as dumb as a literal ponzi but if you could get your point across without being vague as hell that’d be great.
The emperor has no clothes 🤣. That’s as simple as I can put it.
You keep bleating ‘Ponzi’ as if that’s a logical explanation.
Pick anything you like. Anything. Prove it’s not a Ponzi. It might help you understand what an actual Ponzi is.
Ahh, my friend, forget ponzi. Explain economics to me.
Not the OP bit I’ll take the bait… For as long as humans have existed we have paid others to pretend to know the future, once we used chicken entrails, tea keaves etc now we use economists who pretend they are different to thier predecessors who used tea leaves but they to use tools inappropriate to forecasting,
“The only function of economics is to make astrology look respectable.” — Ezra Solomon, professor of finance, Stanford University
Tell me what the value of a dollar is based upon.
Thats easy, get a tax bill (rates notice, car rego, kicense renewal, etc) and try and pay any other way.
The “value” of a dollar is based in nothing but the Government’s ability to force you to forfeit your freedom if you dont comply, that does NOT apply to bitcoin.
Maybe that’s because everyone just trusts or believes it has value.
No it’s becase if you don’t, people in large combat boots, black uniforns and large guns will drag you in front of some crusty okd person, dressed in drag with a wig, aka judge who’ll decided if you did or did not comply and then take your liberty if you did not.
Companies need cash becase the government insists they remit part as tax to them, remit GST to them etc all in fiat. They will NOT take seashells, Gold or bitcoin.
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you can make money in a ponzi, just need to make sure you aren’t the last one buying the top… and with el salvador buying 1 per day https://bitcoin.gob.sv/ i’m not sure the end of the ponzi is even in view
And you notice how they are buying. They are not “buying” with seashells nor if they go to sell will they accept seashells.
They’re just doing it in leiu of Gold, which is what Russia and China do… Who do you think is buying our Gold? Albeit Gokd makes even less sense then bitcoin.
I own small amounts of Etherium and Ripple and have owned bitcoin in the past. I can see use cases for both but as Howard Marks suggests being far ahead of the curve is really no differnt to being wrong.
