According to the Bitcointorrentz guy the initial reaction to the product has been better than expected. No he doesn't get business outside the bitcoin economy, he only deals with bitcoins.
yes, but the question is if those bitcoins are being bought for by dollars/euros, or do they come from people who ended up with bitcoins for some other reason, mining or otherwise. IOW, do they help grow the bitcoin economy by attracting real world funds, or is it just "bitcoin recycling", circulating amongst ourselves. I suspect its mostly the latter, and thats true for the majority of the current bitcoin economy.
I see nothing wrong with holding companies either.. they are getting dividends from other companies and sharing the profits. Dividends don't depend on new people buying shares.
But they do. How do holding companies make profit? Because they make profit on their investments, their shares
. Shares only go up if new people buy in. Since almost everyone on that exchange seems to be invested in everyone else, buys each others ads and give each other dividends, since precious few companies (I use that word lightly) do any real business, the net result is that the "profits" only come from new influx of capital. New capital in to the exchange, not outside capital thats buying goods or services from those companies. Im sure you can see the difference. If no new shares are being sold, I predict there wont be a lot of companies there paying out dividends.
BitPonzi which advertised this, was the only one I know that tried this method, they were open about it and not even around anymore from what I can see.
Sure. Thats not the point. THe point is that, taken as a whole, the exchange and the companies listed on them can only turn out profits/dividends as long as they find new investors. usually that doesnt last