• 0 Posts
  • 178 Comments
Joined 1 year ago
cake
Cake day: July 13th, 2023

help-circle



  • While trading in general is zero sum, if you believe the product you’re trading has intrinsic value, then no one needs to be holding a bag.

    If I sell you a car and you get to use the car, you wouldn’t be holding the bag, because you wanted the car. This applies to stocks, and stock derivatives, as well as commodities.

    The problem arises when there isn’t an intrinsic value (or the intrinsic value is very small), such as with NFTs or many cryptos in general.

    There are cryptos that have some intrinsic value like monero, since they have fungibility and a use case, but most do not.










  • Decentralization isn’t the reason, and conflating it with fediverse services is disingenuous.

    The reason many cryptos use a lot of power is because of proof of work.

    Proof of stake and proof of work have the same effective result for voting power. In order to effectively mine, you need a large capital investment and in order to stay competitive in mining you need to continue spending capital, the same is true for proof of stake as the larger overall stake the lower the payouts, so it requires more capital investment.








  • PGP can also do that, properly implemented, a PGP key with a large web of trust, can be just as effective at making immutable certified statements without having this weird cash based speech thing that crypto has going for it.

    The fact that every single action you do with crypto involves spending money is ridiculous. I don’t mean the scams and stuff, I mean, every single thing, every transaction, every smart contract, every interaction, who wants to play around with a system that just pilfers your cash from you just for the privilege of exploring it.

    At least with aws I can run code locally before they rob me.