Original Title: I know I'm probably gonna be restating the obvious, but it probably needs to be spelled out once again why crypto isn't a "ponzi" or "greater fool" or a "zero sum game", nor imaginary money with no value, and why it has inherent value beyond speculation.
Anything that offers any services and perks we can enjoy, solves a problem and gives us a solution, by definition offers something that creates value beyond mere speculation.
Even if it's just digital.
Even if it's just software.
Would a software that has nothing else to offer but digital security not have any value? What about a software that can check if the money you received is fake? If it offers a service of security, it offered me a solution. So it will be worth more than nothing.
Even if I made no money out of it, even if people keep transferring money from one hand to another, it won't be a zero sum game, because there was still a service that came on top of it.
What services do cryptos like Bitcoin offer?
I could create my own coin on my computer, and tell people they can trade it as a currency. Like my own monopoly money.
But no one would buy it, because there's no security, no network they can trust, I'm arbitrarily validating transactions myself at my own whims. And what problem am I solving for them?
Bitcoin offers services beyond just monopoly money:
1- It offers security services, ensuring your coins are safe, encrypted, and the network is safe every time you use it. Just like that security software in the example earlier. And things like Bitcoin have done this really well with 0 network hacks in over a decade.
2- It offers the service of decentralization. This is probably the big one along with security, and the one that solves a new problem. Removing the need to have to trust. Removing middle men. Removing third parties that stand between you and your money. You now have direct, undiscriminating control of your funds.
3- It offers services of authenticating transactions and coins for me. So I know I'm getting real coins and legit transactions. I don't need to buy additional software to check if the coins I got are legit.
4- It offers a worldwide network for payment and transfer, that I can access and use anywhere in the world. Those things cost money, and take resources to run this. You get accessibility with no discrimination.
5- It offers everyone a full database of transactions so you can always see all your transactions, track transactions, see where money came from, etc...
6- Additional services throughout cryptocurrencies. There's many cryptos with extra perks and additional services. Some give you privacy, some give you smart contracts, some give you governance, some give you defi features, etc...
What would an actual "zero sum", "greater fool", "Ponzi", "no value", "no service" coin actually look like?
This would have to be some shitcoin with none of those services.
Like the example where I just create some monopoly money on my computer, with no blockchain, no security, no decentralization, etc...
A coin that offers nothing, and is just imaginary currency that has only value based on speculation.
So if someone traded my shitcoin, I would get their money, then they would get that money from someone else, and so on. Nothing of value was gained from that coin, no perks of owning it nor being able to safely secure it as a store of value, and no additional services would be enjoyed.
It's just people transferring currency like hot potatoes. In that case, that would be a greater fool and zero sum game.
Now it would still not be a "Ponzi", because that's something completely different, and a term people completely misuse.
I would have to create a shitcoin where I promise people interest if they keep my coin locked while I invest it. But really I don't invest any of it, and pay the interest with just the money of new people locking in their funds.
