3 ms·
Um, what differentiates bitcoin from a stock on the open market (other than the technicalities, centralized vs decentralized)? Stocks are just virtual pieces o
by orthecreedence 9y ago
Um, what differentiates bitcoin from a stock on the open market (other than the technicalities, centralized vs decentralized)?
Stocks are just virtual pieces of paper saying you own X amount of something. So is bitcoin. Stocks are valued not by some formula, but by the constant battle between buyers and sellers. So is bitcoin.
The only real differences are that stocks are somewhat more protected (SEC and all that) and are not treated as property like bitcoin. I guess if you own enough stock you can steer the company you own to some degree, whereas with bitcoin the developers have more of a say than the holders.
Other than that, whether you like bitcoin or hate it, it has many more similarities to the stock market than differences, and anyone who spends their day in the stock market then turns and thumbs their nose at bitcoin seems a bit hypocritical.
- empthought 9y agoBitcoin's entire value proposition by its backers is use as a currency, but you are correct that it is much more like a stock than like a currency. However, unlike (most) stocks it has no value aside from what it can be sold for. https://www.forbes.com/sites/jeffreydorfman/2017/05/17/bitcoin-is-an-asset-not-a-currency https://www.forbes.com/sites/jeffreydorfman/2017/05/17/bitco... has more.
- vikiomega9 9y agoAt the very least stocks have well defined metrics tied to company financials with which value is quantified.
- AstralStorm 9y agoPlus they can also pay directly in dividends.
- ry4n413 9y agoStock: A security issued by a corporation that represents an ownership right in the assets of the corporation and a right to a proportionate share of profits after payment of corporate liabilities and obligations.