9 ms·
Based on your phrasing of the SEC definition, the real estate market also feels like it fits the bill :-/ Edit: parent comment was edited, originally said: >
by ksml 5y ago
Based on your phrasing of the SEC definition, the real estate market also feels like it fits the bill :-/
Edit: parent comment was edited, originally said:
> It actually matches the SEC definition of a Ponzi scheme haha, which happens to be a little bit less restrictive than a traditional definition.
> It's a negative sum wealth redistribution scheme the takes money from new entrants and gives it to miners and to old entrants. The miner portion is what makes it negative-sum.
- sudosysgen 5y agoCan't you rent real estate assets, making it positive sum?
- imtringued 5y agoThe building is positive sum like any other investment. Nothing prevents you from building more. Land is zero sum for obvious reasons.
- arcticbull 5y agoNot all investments are positive sum - metals are zero sum, proof of work coins are negative sum. You can’t build a building on top of nothing so if land has a building on it you can apportion some of the productivity of the building to the land itself. Agreed land without improvements is zero sum.
- sudosysgen 5y agoI didn't mean for society, I really meant for the investors, and investor in real estate has the option to rent it out so buyers of real estate operate a positive sum business.
- sudosysgen 5y agoI'm not talking about zero sum to society. I mean to investors. Land isn't zero sum because you can rent it out.
- nightski 5y agoBy that definition you can lend your crypto as well making it positive sum.
- sudosysgen 5y agoWhen you lend your crypto you're transferring ownership, when you rent you aren't. So crypto loans only make money through interest while land makes rent well over interest.
- arcticbull 5y agoReal estate is a productive asset, because you need somewhere to live. If folks were holding the real estate, empty, simply to resell I would agree - but I wouldn’t advocate real estate as the future backing of money either way.