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RE: 2018 Sharing Is Caring: Time To Make People Rich And End Poverty Around The World!!!!
I share your idealistic view that we should end poverty and cryptocurrency can help us do that, but it needs to be done with sound economics. There are reasons that Steem has value and if it was distributed to everyone so that they could pay for their basic needs it would lose a lot of it. In my opinion, most cryptocurrencies operate to a certain extent similarly to a ponzie scheme where the value they have is dependent only on everyone holding their coins and not cashing out. If most people are cashing out to pay for their needs, the system will not be sustainable without investment that offsets the selling. We can accomplish what you are setting out to do, but we need to do it in a sustainable way. Cheers to 2018!
I don’t buy the cryptocurrencies are like a Ponzi scheme argument. It’s made by banksters and governments (most recently, India) but it’s a weak and deceptive argument. A true Ponzi scheme requires that Pool of People A are getting a return on investment thanks to new funds coming in from Pool of People B who themselves will only get a return on their investment thanks to new funds coming in from a future Pool of People C.
So the vast majority of cryptos are a pure speculation play, without the characteristics of a true Ponzi scheme.
It’s more than a little bit ironic that governments play the Ponzi card. In the United States for instance, Social Security is basically a Ponzi scheme, as are Treasuries.
Is this like state governments saying that they are against gambling when they run lottery systems?
Hypocrisy comes in many forms.
That's a fair argument, I guess saying it's like a Ponzi scheme belittles the inherent value of the technology.
Actually, for the Network Effect to truly make an impact, holding isnt what is required but people actually using the currency. In the end, for the blockchain, it comes down to what is being transacted on there...what is taking place.
STEEM is starting to amass value, as a currency and the blockchain itself, because of the transactions taking place on here. People are still amassing STEEM in the form of SP, which is a type of HODL, yet the system is established in such a way that there is a lot going on. That is the value in this system.
I agree there are a lot of tokens created with the sole intention of ponzi scheming or some type of get rid quick operation with no viable solution. What is sad is many of them dont even have the intention of creating anything or solving a problem...they simply want to get some quick money.
That's a good way to look at it. I've always described cryptos as being largely speculative and far out pricing their inherent value, but each good crypto solves an important problem. Maybe how well it is solving that problem is a better way to measure its worth.