Because cryptocurrencies are basically a pyramid scheme, the money for early investors is made by huge amounts of new people entering the pyramid.
Lots of people enter the pyramid because they have seen early investors benefit greatly and they want to benefit too. It works very well until people start getting out of the pyramid(selling) and the same thing happens in inverse, people want to recover the money they invested and price plummets.
There are two main reasons a big company like Nvidia can not mine for themselves:
1. Nobody will enter the pyramid in the first place just for enriching Nvidia. People enter a pyramid because they have seen their neighbor making money "out of nothing" and they get the Gold Rush themselves. Like a virus the Rush is contagious by people between them.
2. When prices go up everything is happiness and good feelings. When prices go down the people that have lost their savings will get mad at the company that benefited from their own ignorance or greed.
“Because cryptocurrencies are basically a pyramid scheme, the money for early investors is made by huge amounts of new people entering the pyramid.”
I think your viewpoint could use some revision. You’ve either described any typical investment but I Uber it as a pyramid or you misunderstand the goals of crypto.
Lots of people enter the pyramid because they have seen early investors benefit greatly and they want to benefit too. It works very well until people start getting out of the pyramid(selling) and the same thing happens in inverse, people want to recover the money they invested and price plummets.
There are two main reasons a big company like Nvidia can not mine for themselves:
1. Nobody will enter the pyramid in the first place just for enriching Nvidia. People enter a pyramid because they have seen their neighbor making money "out of nothing" and they get the Gold Rush themselves. Like a virus the Rush is contagious by people between them.
2. When prices go up everything is happiness and good feelings. When prices go down the people that have lost their savings will get mad at the company that benefited from their own ignorance or greed.