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Stocks are a thing because no one thinks of them as liquid assets. Steam is making the same argument about bitcoin essentially.
by vxNsr 9y ago
Stocks are a thing because no one thinks of them as liquid assets. Steam is making the same argument about bitcoin essentially.
- ajross 9y agoStocks are an order of magnitude more liquid than Bitcoin, though
- rebuilder 9y agoThat would depend entirely on the stock. I'm sure there are many, many companies whose stock trades at less daily volume than BTC. Actually, I'd think few companies' stock trades at BTC's volume.
- ajross 9y agoOh sure, Berkshire Hathaway is less liquid. There are lots of stocks designed via various tricks (usually just share price) to be held and not traded. Nonetheless, for any of the "commonly traded and indexed investment securities we all talk about colloquially as 'stocks'", the daily trade to capitalization ratio is routinely an order of magnitude higher than bitcoin.
- stephengillie 9y agoIt was eye-opening to realize people buy stocks for 2 reasons: 1. Dividend payments 2. The expectation that someone else will want the stock more in the future. (Often for reason #1.) Financially, there is no other logical reason to possess stocks. It was part of the larger lesson that companies often perform irrational actions because they are made primarily out of people.
- meric 9y ago3. Voting rights.