Are vanguard stocks and other stocks on wall street a ponzi since those who invested long ago benefit the most from them?
Are vanguard stocks and other stocks on wall street a ponzi since those who invested long ago benefit the most from...
every investment is a ponzi. zero sum game
no. But that's not why cryptos are ponzi schemes.
Everything is a ponzi scheme.
That’s the definition of ponzi Breh
Capitalism is a Ponzi scheme
A Ponzi scheme is when you sell something that is not real to investors and use the new investors to pay back the original ones. Buying stocks/etf's is buying ownership in actual tangible companies. So no, it's not a Ponzi scheme at all
A ponzi is fraudulent, where gains are guaranteed and paid out through new investment. Crypto is not a ponzi because there are no guarantees, its not deceptive. If you define a ponzi to be anything where new money buying in is paying out old money cashing out, then literally every asset in the world is a ponzi.
Then bitcoin isn’t ponzi at all either since it has massive utility.
She needs to shave her back.
Why is she hairier than me?
Because you have more eoestrgen than her
I can comfortably squat over 100kg
It's much easier to make the argument that Bitcoin is a Ponzi scheme because unlike stocks, it doesn't rely on financial ratios yo analyze it's health at certain prices. If you can prove it offers it's buyers utility, then no, it isn't a Ponzi scheme
I think its Elsa hosk
Bitcoins utility is vast. I've charged Bitcoin debit cards at my work. Before I read about Bitpay on the webs. If someone can buy a dildo from my sex store with a BTC debit card it has a use far greater than a stock with P/L ratios. Can you fuck a girl with amazon stock?
>A ponzi is fraudulent, where gains are guaranteed and paid out through new investment.
you've got it mixed up, the victims of a ponzi obviously don't know it's fraudulent, just that whoever is running it is a really good investor. they aren't thinking it's guaranteed because the manager can time the market perfectly or whatever.
crypto isn't a ponzi because that refers to a pretty specific thing. but it is deceiving most people who "invest" in it. mostly people who don't understand financials and think an investment priced 99% by speculation is sustainable.
>then literally every asset in the world is a ponzi.
making money with crypto ultimatly requires you to sell to someone else who thinks he can sell it for more. when you run out of new people who want in on this scheme it will stop growing
if you invest in something like a farm, you make money off the sale of the produce whether or not other want to buy the farm off you.
The way I think of it is that because we are the initial investors whom are establishing a pool of liquidity, we benefit from the increase in value over time and when bitcoin reaches its near final value, the liquidity pool will be so large that no one can earn anything from bitcoin but they will be using it as a currency and that’s why they’ll be buying it.
for real tho how much link do i need for her to give me rim?
I can only guess you're thinking that the price of a crypto will stabilize once there is enough adoption? which is wrong, but it's kind of hard to explain why
>making money with crypto ultimatly requires you to sell to someone else who thinks he can sell it for more. when you run out of new people who want in on this scheme it will stop growing
That's the same reason people buy gold or silver, most of them aren't going to actually use it. I think that resembles Ethereum, which has an actual use as fuel for dapps. It's just currently the market has priced in a very high demand for dapps which may or may not turn out to be the case.
Depends on what price you got the Amazon stock
>That's the same reason people buy gold or silver
historically yes, it wasn't a full 50 years ago when gold was THE currency. but these things change slowly, the correlation between gold and currency has been fading out for the past few decades.
last time I checked you would have made more money from a 10 year government bond than holding gold for the same period of time
Just think of it this way - it you were no longer allowed to sell the asset, would it affect you much?
It this happened to my stock portfolio, I wouldn't mind since I plan to hold them and live off the dividends.
If this happened to bitcoin, it would be completely worthless.
Another interesting thing is that bitcoin (or any currency) has the same utility regardless of the price. Stocks have a flow of future dividend payments, so ideally you want them to be cheap so you can get more dividends.
The value of an equity is equal to the excpected value of it's discointed cash flows. Take a share of GE. Every year they pay a dividend of $2. Assuming that dividend continues forever and discounting that at 2% per year, a share of GE has a $15 value. Today a share of GE trades below $15, indicating that investors don't think GE will be able to maintain it's current dividends.
BTC has an expected cash flow of zero, making it worthless.
A lot of stocks don't offer dividends. Some people argue that you should never actually buy dividend-paying stocks because it's a sign that the company is plateauing when they think it's better to hand out money to investors rather than reinvest it into the company.
Haha. This idiot sold his BTC for GE stock.
Guys not all stocks pay divis......
DING DING DING
>not all stocks pay dividends
Yes, but those that don't are expected to pay dividends in the future.
Well brappedy brap brap brap, what do we have here.....
Aye there's the miller theorem which says it shouldn't matter. I think they do though because:
1) Dividends stop management getting too greedy
2) Dividends are less volatile than market price so it's easier to live off than relying on selling growing stocks
3) You can use up your personal allowances for income tax and capital gains tax to minimize taxes.
it's either use the profits of the company to pay dividends, or reinvested to make the company itself worth more.
say if you have majority share of a small restaurant at max profitability, you can either just pocket all the profits, or spend it on opening a second store. you're trading the cash in hand for having two physical locations that can bring in more profits later