Third sentence from end: "thought", rather than "though" (I'm an editor).
Yes, ponzi scheme is a good description, because the whole system is enabled by the constant influx of new mugs. Like you say, try to withdraw and the whole facade disintegrates, which proves the point.
Add to that the cumbersomeness of the NFT tracking system and its huge energy consumption, all of which point to it's uselessness as a currency of exchange. Yet people expect the value of the crypto to keep rising, thus at some point getting a return on their "investment" when they want to cash out. Yet, some govts are considering a digital currency, which could provide the benefit of knowing what everyone spends on everything, the ultimate controlled economy. But I don't see any govt on this planet capable of such complexity.
Another description for crypto could be confidence racket - if you believe in crypto - hey, I just happen to have a bridge for sale! This confidence racket idea also applies to carbon credits and offsets (and other indulgences). Trust me - I have a way to fund a portion of the Fed's overnight lending rate, so I can make that huge interest rate almost every night! But, I can't let just anyone in on this secret, I would need to see $2M just to think about letting you in on it. (this is BS, just like crypto) But you get the idea, on confidence, putting a price on trust, etc.
Third sentence from end: "thought", rather than "though" (I'm an editor).
Yes, ponzi scheme is a good description, because the whole system is enabled by the constant influx of new mugs. Like you say, try to withdraw and the whole facade disintegrates, which proves the point.
Add to that the cumbersomeness of the NFT tracking system and its huge energy consumption, all of which point to it's uselessness as a currency of exchange. Yet people expect the value of the crypto to keep rising, thus at some point getting a return on their "investment" when they want to cash out. Yet, some govts are considering a digital currency, which could provide the benefit of knowing what everyone spends on everything, the ultimate controlled economy. But I don't see any govt on this planet capable of such complexity.
Another description for crypto could be confidence racket - if you believe in crypto - hey, I just happen to have a bridge for sale! This confidence racket idea also applies to carbon credits and offsets (and other indulgences). Trust me - I have a way to fund a portion of the Fed's overnight lending rate, so I can make that huge interest rate almost every night! But, I can't let just anyone in on this secret, I would need to see $2M just to think about letting you in on it. (this is BS, just like crypto) But you get the idea, on confidence, putting a price on trust, etc.
Thanks Kathleen!