Cryptocurrency can be compared to a disorganized lottery where participants buy and sell at different times, creating an unpredictable and uneven distribution of rewards. Unlike a traditional lottery with a fixed draw date, the "crypto lottery" has no clear start or end point, especially during bull runs, which are periods of rising prices. For example, imagine 1 million people each invest $100 in a cryptocurrency. One person buys early, while another buys a year later. Both invest the same amount, but the early buyer stands to gain significantly more because they entered the market when prices were lower. This dynamic means the first buyers often reap the majority of the rewards, while later buyers are left hoping for a price surge to profit. In this sense, the crypto market is less like a traditional lottery, where all participants have an equal chance of winning, and more like a race where timing is everything. The early adopters benefit the most, while the latecomers are essentially gambling on becoming the "lottery winner" by buying in at the right moment before the market peaks or crashes.
In this alternative system, 1 million people each donate $100 every month, pooling together a total of $100 million. Each month, 100 contributors are randomly selected to receive $1 million each. Once selected, these individuals are removed from future draws, ensuring a fresh group of 100 people is chosen the following month. This creates a structured and fair lottery-like system where everyone has an equal chance of being selected, and the rewards are distributed evenly over time. Unlike the unpredictable and timing-dependent nature of cryptocurrency, this model guarantees that 100 people will win $1 million every month, providing a clear and transparent way to share the pooled funds. Over time, all contributors have a chance to benefit, and the process continues until everyone in the pool has had an opportunity to win. This approach eliminates the advantage of early participants and ensures a more equitable distribution of rewards.
Users of cryptocurrency cannot complain about losing money while rejecting this structured format and instead expecting to win when the structure is few early winners and majority late losers.