Comment by 542458
4 years ago
> Where the money was coming from when Facebook, Google, Youtube, Twitter etc were really good places that were free to use?
I don’t think this is very mysterious. It’s coming from investors who are spending money in the expectation of future profits as the business scales and reaches greater efficiencies and increases monetization.
In the case of this cryptocurrency there’s no obvious point where these tokens suddenly become useful. People only buy them because somebody else will be willing to buy them later (which, of course, relies on ever-increasing amounts of money entering the system). With a stock you are at least theoretically anchored to real world value, since you can buy out a company with stocks and then liquidate the company’s assets.
All these coins and projects have a mission statement and high level overview on how they think it will be useful in the future. It's up to you to believe them but they do have a proposal.
The stocks are more opaque in that regard, they are required to publish some declaration and financial disclosure but explaining why you need to invest in that company stock often comes down to CEO's appearing in the press. Countless internet ventures died in the process.
> All these coins and projects have a mission statement and high level overview on how they think it will be useful in the future.
The thing I like about Dogecoin is that it's at least honest: it's not selling itself as anything more than a token with a price that will go up if more people buy it.