Renowned investor Balaji claims that Bitcoin is a zero sum lottery and explains why Bitcoin is diffe

When the official meme coin TRUMP launched by President elect Donald Trump of the United States continues to cause market mania, Balaji Srinivasan, former chief technology officer of Coinbase and former general partner of Andreessen Horowitz (a16z), a venture capital firm, criticized this kind of token on community platform X for its lack of wealth creation ability, which is essentially a zero sum game.

Balaji The meme coin is a zero sum lottery (if the platform draws, it is actually a negative sum), and there is no wealth creation. Each buy order only corresponds to a sell order. After the initial surge, the final price will collapse, and the final buyer will lose everything

Balaji It is believed that unless one is a professional trader, people should participate in the cryptocurrency market with a moderate attitude of small bets and satisfaction, rather than overinvesting in this type of currency. "For most people, they should buy assets that can maintain their value in the long term.

He added that although some memes do maintain their value by increasing their application scenarios or consistently appearing in the news, overall, do not invest in anything you cannot afford to lose.

Balaji The article has caused a great response from the cryptocurrency community, and he later responded to the question of whether Bitcoin is considered a meme and explained why Bitcoin is different from meme using six reasons. He wrote:

1. Bitcoin is the underlying asset of a memory blockchain, with a computing power of approximately 800 Eh/s, distributed in hundreds of data centers around the world. 2. It has not been hacked for over 15 years and has survived several drops of 80% to 90%. 3. It has hundreds of millions of holders around the world and has formed a global network effect. 4. Its development is gradual, not overnight, and its mining and issuance rules limit the amount that any party can sell. 5. It has an "industrial use" in a sense, as the Bitcoin memory blockchain can generate difficult to forge encrypted proof of existence. 6、 It is the first asset of its kind and has pioneered this entire field. In short, I believe Bitcoin has proven its durability

Related articles: "Trump Announces to Issue Its Own Meme Coin TRUMP on Solana Chain", "After Trump's Wife Issued Meme Coin Melania, the Success of Ten Billion Valuation Pushes TRUMP to the Abyss"