Cryptocurrency question

dkozloski

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I have a small understanding of crypto so I apologize if this question sounds stupid to people who know more

Take a polygon for example: from my understanding Polygon is a coin but also connected to software that makes the Ethereum blockchain more efficient in some way. It’s great that that software makes the blockchain more efficient, but how is buying the coin actually investing in how well that tech is doing?

And if buying the coin isn’t actually investing in that tech and it’s only based on supply and demand, then why should you buy any coin that isn’t just built to be used as a currency in the first place?
 

dkozloski

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I have a small understanding of crypto so I apologize if this question sounds stupid to people who know more

Take a polygon for example: from my understanding Polygon is a coin but also connected to software that makes the Ethereum blockchain more efficient in some way. It’s great that that software makes the blockchain more efficient, but how is buying the coin actually investing in how well that tech is doing?

And if buying the coin isn’t actually investing in that tech and it’s only based on supply and demand, then why should you buy any coin that isn’t just built to be used as a currency in the first place? Best Private Money Lenders in Nigeria
thanks in advance for any help
 

danda

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Most cryptocurrencies are scams of one form or another. imho, bitcoin and monero are the only solid ones.
how is buying the coin actually investing in how well that tech is doing?
short answer. It's not. one can make an argument that a buyer is increasing network effect, etc, etc. However, most of these coins are pretty much useless and the market price will eventually reflect that. So buying is basically just enriching those who got in before you, in the hope that somebody else will buy it for a higher price than you paid, else you get left holding the bag.
 

Shadetreemechanic

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Most cryptocurrencies are scams of one form or another. imho, bitcoin and monero are the only solid ones.

short answer. It's not. one can make an argument that a buyer is increasing network effect, etc, etc. However, most of these coins are pretty much useless and the market price will eventually reflect that. So buying is basically just enriching those who got in before you, in the hope that somebody else will buy it for a higher price than you paid, else you get left holding the bag.
What he said
 
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