I'm going to be honest - I feel like this whole industry is nothing but a speculative Ponzi scheme. I don't understand it, and the more I hear about it, the less I "get" of it.
If the intent is to provide a secure store of value then I think this is being conflated by many to be the same as wealth. A representation of value -- e.g. a currency -- is not the same things as wealth. It is merely a system designed to transfer wealth. A tool. Maybe it's more efficient than the dollar, but how much value does that create? We haven't yet seemed to figure that out, as far as I can see.
Wealth is created when someone produces something, whether a service or a good. "Mining" a digital coin and then calling it "wealth" simply because you've said so means absolutely nothing to me.
Plus, you are competing with governments of the world and established currencies that are centuries old in many cases. Yes, you can "print" a dollar and it feels like the same thing, but the difference is that dollar is issued by a government, whereas a cryptocurrency is an unknown store of value (or something) that is only backed by founders who insist that "it's the future" while dumping it in the background. Time and again.
I know, I don't get it. Sometimes I get interested, and then I see too many stories like this, where these companies are just houses of cards.
And what of private crypto when the Fed creates a digital dollar? At that point is the only value privacy? Well, yeah, that has some value, but not what they are thinking.
Can someone explain the point of these things in a paragraph or less? How does it generate wealth?
NFT's are another one. Millions of dollars for a file showing Lebron dunking a ball. "But it's the original!" Uh huh. Zeros and Ones arranged in a particular order.
I'm going to be honest - I feel like this whole industry is nothing but a speculative Ponzi scheme. I don't understand it, and the more I hear about it, the less I "get" of it.
If the intent is to provide a secure store of value then I think this is being conflated by many to be the same as wealth. A representation of value -- e.g. a currency -- is not the same things as wealth. It is merely a system designed to transfer wealth. A tool. Maybe it's more efficient than the dollar, but how much value does that create? We haven't yet seemed to figure that out, as far as I can see.
Wealth is created when someone produces something, whether a service or a good. "Mining" a digital coin and then calling it "wealth" simply because you've said so means absolutely nothing to me.
Plus, you are competing with governments of the world and established currencies that are centuries old in many cases. Yes, you can "print" a dollar and it feels like the same thing, but the difference is that dollar is issued by a government, whereas a cryptocurrency is an unknown store of value (or something) that is only backed by founders who insist that "it's the future" while dumping it in the background. Time and again.
I know, I don't get it. Sometimes I get interested, and then I see too many stories like this, where these companies are just houses of cards.
And what of private crypto when the Fed creates a digital dollar? At that point is the only value privacy? Well, yeah, that has some value, but not what they are thinking.
Can someone explain the point of these things in a paragraph or less? How does it generate wealth?
NFT's are another one. Millions of dollars for a file showing Lebron dunking a ball. "But it's the original!" Uh huh. Zeros and Ones arranged in a particular order.
"It's art!"
I'm a dinosaur...hear me roar.