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"but they could (in theory at least)", uhm, what theory is this? No seriously I would like to hear the theoretical basis for this assertion (though I think you
by zzzzzzzza 9y ago
"but they could (in theory at least)", uhm, what theory is this? No seriously I would like to hear the theoretical basis for this assertion (though I think you are totally wrong as well).
- technofire 9y agoWell, one theory is that the valuation of bitcoin is largely unrelated to the systematic overvaluation of companies that ostensibly would be the reason behind a crash. Thus when the market start revisiting its value of stocks, this doesn't affect the value of cryptocurrencies.
- jedrek 9y agoYeah, cryptocurrencies have their own overvaluation issues.
- moduspol 9y agoI'm not OP, but I think it's likely that in another 2008-style recession where the risk is systemic, the value of Bitcoin is likely to rise as people seek something that can be traded easily yet is not tied to fiat currencies likely to pull each other down (e.g. USD and Euro).
- nnfy 9y agoLike any market, cryptocurrencies have value because of the collective valuations of large numbers of individuals. The simple fact that people like GP exist, and that there have been enough of them to propel the market cap of BTC et al. to billions, suggests that people like GP will continue to exist if the economy crashes. In fact, if the economy were to crash, it would only take a handful of high volume BTC purchases, I'd bet, to cause another spike in price as people see an opportunity to shelter their finances. Yes, it is high risk, but you're not just throwing away your money. BTC is much like gold in this manner - to the lay person, there is little value in the commodities other than as a store of value, which becomes more and more appealing as price continues to rise. Look at gold. Markets do not always appear to be rational.