Does crypto expose the emperor's clothes of the financial services industry?(robinwinslow.uk)

1 pointsby nottrobinvor 4 Jahren2 comments

Does crypto expose the emperor's clothes of the financial services industry?

https://robinwinslow.uk/crypto-house-of-cards

2 comments

> So I think the problem here is not that crypto isn’t a ponzi scheme, it certainly is. But if so, then what part of the financial services industry can claim that it isn’t also?

Stocks that pay dividends aren't ponzi schemes.

Bonds that use the money to pay for public infrastructure aren't ponzi schemes.

And on that note, private companies that use the funds from the sales of stock in order to actually provide a good or service, would also qualify as non-ponzi scheme.

Are there ponzi schemes on Wall St? Plenty. But most of it? No.

nottrobinvor 4 Jahren

Yes, you're right. Not everything in the world is a ponzi scheme. I clearly didn't write my post with enough caveats in it. I'm just saying tons of shit that happens all the time is a ponzi scheme. The selling of stock for a business of value isn't a ponzi scheme in itself, but the speculation on that stock then largely is - stock value bears very little relation to "real worth". Stock that pays dividends is fine when held for that purpose. The thing is that so many of these systems are set up to encourage speculation. And now everything is high frequency trading etc. That is the toxicity.