So it's cool if you take part in a pyramid scheme because you're taking on risk?
I don't think this is any more a fact than my statement. I'm merely trying to point out that you seem to be saying it's ok to invest in what people perceive as a scam (my example was pyramid schemes) because it's an investment.
Literally the only way you can profit with stocks is if people keep buying in at higher prices. It's the perfect instantiation of a pyramid scheme.
Except, of course, if you live in it, rent it out or use it as businesses asset. Good luck doing that with crypto.
> Literally the only way you can profit with stocks is if people keep buying in at higher prices. It's the perfect instantiation of a pyramid scheme.
Except, of course, that you as a shareholder can influence the direction of the company and earn dividends. Good luck doing that with crypto.
- Real estate has real-world use cases
- Stocks have real-world use cases
- Bitcoin has real-world use cases
It's meaningless to describe any of these as pyramid schemes because "to profit you must be able to sell at a higher price to someone else". That's true of buying or selling anything.
There are people using Bitcoin as a currency, via lightning, right now. More join all the time. The network expands.
It is a currency, is used as a currency, as sats. It is also a long term store of value as Bitcoin. You can ignore reality as much as your like, but the world has moved on from your 2017 era complaints.
It is wildly practical today, and there are several good custodial solutions if you do not wish to run a node yourself. Please give it a try!
I'm afraid your comment doesn't make much sense.
I recommend not storing your password with your coke.
How does that differ from other commodities trading? The only way to profit in the futures market is to buy low and sell high, too, for instance.
It doesn’t. Trading is zero sum. It supports the extraction, processing and delivery of useful things, however, which is positive sum.
Trading between financial participants is, cetiris paribus, always zero sum. Irrespective of the timeline.
Buyer's gains are the seller's opportunity cost; buyer's losses were avoided by the seller. (Paribus violation is when parties have different funding costs.)
Moving commodities around isn't trading per se; it's logistics. Again, value adding.
Only if you consider the trade in the quantity of the goods traded, and not in a prevailing unit of accounting.
Nope, this is microeconomics. If you and I have the same funding costs and we trade a commodity derivative, any gain you have is a gain I gave up. Any loss you have is one I avoided.
This is true irrespective of the unit of account of point in time at which one measures it; it's an identity. The only
Someone who buys wheat, holds it and sells it the next day is definitely not “trading”, he merely engages in a series of discrete trades? Daft.
The "and use" phrase is what differentiates commodities from cryptocurrency.