Re:Kazakhstan to restrict crypto miners amid power shortages
by ilammy on Wednesday November 03, 2021 @06:38PM
(#29101371)
> at no time will it produce "dividends" in fiat currency, or physical objects like cell phones
Why it has to be physical? One could use cryptocurrencies to pay for virtual things on virtual internet, which are nevertheless thought to be meaningful.
Like, fiat currencies exist as a way of paying taxes to your government and also you can exchange them for goods and services.
If you buy and hold cryptocurrency, at no time will it produce "dividends" in fiat currency, or physical objects like cell phones.
So if you make money by selling some cryptocoin, that is _entirely_ because someone else purchased it at a greater price than you did.
Their expectation is that someone else will later buy it at a greater price from them, and that person will be buying it on the hope that someone will pay yet more again.
No actual cashflows appear anywhere in this process.
What happens when there isn't a new Greater Fool?