that brilliant mechanism is called ponzi, continuous version
Clever, funny words
That brilliant mechanism though is called "interest" which is the off setting risk reward for daring to enter
into a new business in the early stages of its megatrend and the compensation for market volitility that make typical supply demand price ratios a crap shoot
in a darkened alley.
not clever, just ponzi, new idiots give their moneyz to the old ones,
and you need more and more idiots to sustain the process.
I think Desynct is joking, I know he's a smart guy from his other posts.
However, I think some clarification is in order.
So, if people go to a market and buys fish to feed their family, is that ponzi? No, it is not.
Perhaps some perceptions of a free market vs ponzi is skewed.
- A ponzi is a deliberate scam to defraud people and offers nothing in return.
- A free market is not a ponzi. A free market, like any market cannot exist without the support of a community or communities.
For example:
If you have a fish market, but no one wants to buy fish. After a period of time the fish market will go away because it is no longer supported by the community. However, if people like to eat fish to stay alive and fish is their preferred source of nutrients or like how it tastes, they'll continue to buy fish. However, if they don't make use of the fish it will rot, decompose and make a big stink, but the rotted fish still have utility value as it can be used to fertilize the soil. A fertile soil can grow fruits, vegetables, trees, flowers, grass and much more.
If people continue to buy more and more fish, it will create a demand for more fish resulting in new jobs or trades related to the market. As the demand grows so does its use of the resource to help support the fish market and as a result help it flourish and grow into other markets.
In regards to HYP, it offers value. What that value will become is dependent on the community supporting it. The stakes are rewards for securing and maintaining the network.
However, when no one trades, it will have a network, but not a healthy market. So in order to have a healthy market, people to need to trade as well. This means you need both sellers and buyers for a good balance. Having one without the other, does nothing for the whole.
Hope that helps.
