I've been hammering on this point for quite some time, but it's worth repeating in the simplest English possible that you could explain to a twelve year old.
Cryptocurrencies aren't currencies. They're investments, and pretty bad ones at that.
Cryptocurrencies aren't currencies. They're investments, and pretty bad ones at that.
They may have started out with that idea to be magical internet money, but that idea failed.
Now most people they treat it like an investment. People want to get more dollars than they put in.
Now most people they treat it like an investment. People want to get more dollars than they put in.
Unlike investing in shares in a real company which does something in the world, buying a crypto token doesn't do anything.
It's like a casino chip.
It's like a casino chip.
You can use the casino chip to play the games at the casino, but the games are rigged and the house always wins.
The reason the casino exists is because there are more losers than winners. The games are designed like that, this is what is we mean by "negative sum" games.
The reason the casino exists is because there are more losers than winners. The games are designed like that, this is what is we mean by "negative sum" games.
For every one person you see winning at the slots, there's an enormous pile of losers who went home empty handed. Their money went to pay out that one winner, and the rest went to the casino.
The reason the casinos exists at all is that losers must exceed winners.
The reason the casinos exists at all is that losers must exceed winners.
And there are many gamblers who pretend they are winning. The original meaning of the word "shill" is a gambler who plays using the casino's money in order to keep games going when there are not enough players.
Most crypto marketing is from shills.
merriam-webster.com/dictionary/shi…
Most crypto marketing is from shills.
merriam-webster.com/dictionary/shi…
Maybe the casino will let you cash out your chips, but they have no obligation to because they're usually run by crooks.
If the casino says you lost there's nothing you can do.
If the casino says you lost there's nothing you can do.
Casino chips just like bitcoin don't create wealth, they just shift money around.
There is no value created, so all money going out of the system comes from money other people put in.
There is no value created, so all money going out of the system comes from money other people put in.
That's why it's a rubbish investment.
Its like a machine where you put dollars in, and it gives you pretend money that you can't spend and hope to trade it other people who think pretend money must go up. And everyone has to do this in a game of musical chairs ... forever.
Its like a machine where you put dollars in, and it gives you pretend money that you can't spend and hope to trade it other people who think pretend money must go up. And everyone has to do this in a game of musical chairs ... forever.
That makes no sense and can't last. Eventually the music has to stop and a lot of people are going to find themselves without a chair. And it's going to end very badly for many people.
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