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The point is that in theory when you buy a stock, it doesn't matter if everybody else in the world thinks the stock is worthless. You can hold the stock, collec
by chrisorm 9y ago
The point is that in theory when you buy a stock, it doesn't matter if everybody else in the world thinks the stock is worthless. You can hold the stock, collect the dividend and get your value back if you were correct. Even if the stock goes down, if you were right that the time adjusted returns from the stock exceed the price you paid, you made money.
In bitcoin, litterally the only way to get a return is for more people to come in and push the price up more. If bitcoin goes to 1c you cannot get that value back even if you were correct that the "fair value" was above your buy in price.
- hndamien 9y agoThe fair value is based on the usefulness as a currency, which means other people accepting it. If it is withdrawn so much that the price is so low and there are so few believers left, then this is in fact the fair price, and equal to its utility as money.