Non dividend paying company stocks are market speculation, not a ponzi.
Cryptocoins, not being part of a circular economy, must, by definition, keep attracting new money to pay for earlier investors. Sounds much like a pyramid.
A more apt analogy would be a public company that does not do any real economic activity and simply issues more shares to cover expenses. Cryptocoins cannot exist without the network running and the only way to cover those expenses is to attract new money without any product. While stock speculation is a zero sum game, cryptocoins are negative sum game. Quite a major difference in my book.
Again, the speculative value of cryptocurrencies is largely built on the belief that the dApps built on top of the network will have enough usage and revenues to justify the current valuations.
If you look at the revenues generated by OpenSea or Uniswap or Compound, it's not exactly an outlandish idea.
The speculative value of cryptocurrency is based on nothing more than the greater fool theory. ETH isn’t down 75% YTD because of discounted dApp cash flows, let’s be realistic here.
Cryptocoins, not being part of a circular economy, must, by definition, keep attracting new money to pay for earlier investors. Sounds much like a pyramid.
A more apt analogy would be a public company that does not do any real economic activity and simply issues more shares to cover expenses. Cryptocoins cannot exist without the network running and the only way to cover those expenses is to attract new money without any product. While stock speculation is a zero sum game, cryptocoins are negative sum game. Quite a major difference in my book.