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Joined 1 year ago
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Cake day: July 13th, 2023

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  • 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.