The difference is that both stocks and the general economy produces value. This is what separates them from a Ponzi which is only a redistribution of assets.

"Civilization is a Ponzi" is essentially my conclusion. The thing holding up government backing as the standard of real asset is simply its capacity as the just middleman enforcer. Subtract that and currency, real estate, stocks, bonds, contracts, credit ratings and IP rights all go poof. You're left with clothes-on-your-back and local community trust.

That's why I see crypto tokenization as an important step towards having another "financial material" to work with. It doesn't commandeer enforcement at a global level, so it doesn't compete with governments on their own terms, but it can help build trust at scale by being designed around the trustless scenario, which reduces reliance on enforcement and bureaucratic methodology in many applications. Crypto projects with a focus on achieving good governance are some of the most promising out there, even as they are hidden in the endless waves of scams.

You could argue that civilization itself is a Ponzi scheme.

One day, there will be a final generation left holding the bag.