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File: 1789669898238-5.png (262.88 KB, 372x521, ClipboardImage.png)

 

Wanna make some quick cash but it's been years since I've done anything crypto related. What's the meta these days?

>>824634
Its not worth it unless you yourself shit up new scamcoins and sell it to retards.

>Meme coins and extreme speculation are gambling. Their expected value is negative, and returns rely entirely on psychology rather than economic value creation.


>Here is the mathematical and economic case against meme coins:


The Greater Fool Theory

<No intrinsic value: Unlike stocks backed by cash flow and dividends, meme coins have no underlying business or balance sheet.


<Price formation: Profit relies solely on selling to a "greater fool." When new buyers dry up, liquidity vanishes and prices crash instantly.


Risk/Reward & Sharpe Ratio

<Extreme volatility: Prices can swing wildly based on a single social media post.


<Abysmal risk-adjusted return: Even if someone hits a 10,000% gain, the overall Sharpe ratio is rock bottom. Picking the right coin among scams and timing the top is statistically comparable to a lottery win.


Investing vs. Gambling

<Expected Value (EV): The stock market has a positive long-term EV driven by corporate earnings and economic growth. For meme coins, individual EV is negative, insiders win, the masses lose.


<Risk premium: Real investing compensates you for taking on uncertainty. Meme coins carry maximum risk with zero mathematically justified return.


>The gambler's mistake is being blinded by the potential payout while completely ignoring the low probability of success.


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