#mundocrypto source BBC News
In what sense are they a scam? Is it not the same as investing in the stock market?
Let's compare this to a real investment, such as stocks or bonds. You invest your money in the market, let it sit for a while, and then sell. But, in the meantime, you have also earned from dividends and interest payments.
This creates what is known as a positive-sum game. You may still be losing money in the stock market, but you have the guarantee that at least someone is making money.
In the cryptocurrency space, there are no dividends. There are no interest payments. There is nothing. The only value of a cryptocurrency is what someone else will pay for it. And that is not an investment. That is a game of chance.
And it is worse due to the deliberate inefficiencies in cryptocurrency systems. It ends up becoming a deeply negative-sum game. Basically, for every dollar someone made in cryptocurrencies, someone else lost two. And that is not an investment; it's like betting on horse races. In what sense are they a scam? Is it not the same as investing in the stock market?
Let's compare this to a real investment, such as stocks or bonds. You invest your money in the market, let it sit for a while, and then sell. But, in the meantime, you have also earned from dividends and interest payments.
This creates what is known as a positive-sum game. You may still be losing money in the stock market, but you have the guarantee that at least someone is making money.
In the cryptocurrency space, there are no dividends. There are no interest payments. There is nothing. The only value of a cryptocurrency is what someone else will pay for it. And that is not an investment. That is a game of chance.
And it is worse due to the deliberate inefficiencies in cryptocurrency systems. It ends up becoming a deeply negative-sum game. Basically, for every dollar someone made in cryptocurrencies, someone else lost two. And that is not an investment.