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> The bubble is too big for Google There is the "bubble" word again. So how about our economy, isn't that a bubble too? What is a bubble? I still see too many

by brwsr 9y ago

> The bubble is too big for Google There is the "bubble" word again. So how about our economy, isn't that a bubble too? What is a bubble? I still see too many places in the world where the sales price for a house is easily 10x the price it actually cost to build it. Banks? Quantitative easing? Startup's? Or at what point will Google look like a bubble itself? Governments and Banks have learned that the crypto-currency revolution can replace a significant part of our current economy. Whether that's good or bad news, calling it a bubble is foolish and cheap IMHO.

smt88 9y ago
Sure, any bubble can pop. But unlike some other assets, like houses, many popular cryptocurrencies currently have little-to-no intrinsic value.
- shitgoose 9y ago
  does an AMZ share have an intrinsic value?
  - the_gastropod 9y ago
    ....yes https://www.investopedia.com/terms/i/intrinsicvalue.asp https://www.investopedia.com/terms/i/intrinsicvalue.asp
    - shitgoose 9y ago
      yep. the only intrinsic value i get in exchange for 1,300$ AMZ share is the link explaining the value of an intrinsic value. what exactly can you claim from amazon in exchange for a share? except for a kick in a butt from amazon security?
  - admax88q 9y ago
    Yes because at the end of the day an share of AMZ means you own a small percentage of that company. That includes a small percentage of all their physical assets, servers, real estate, cash on hand etc. So yeah there is some intrinsic value.
    - CryptoPunk 9y ago
      Exactly. Cryptocurrency valuations at the moment are 99% speculation about future utility. Actually it may be 99.9%.
      - mulmen 9y ago
        Pet peeve: made up numbers. Why not just use an adverb? Yes, I spend a lot of time annoyed.
        CryptoPunk 9y ago
        Yes I should have said "on the order of 99%". I think generally figures like "99%", when used in this context, imply that this is an approximate value, but I agree that it's better to explicitly state that.
    - shitgoose 9y ago
      can you go to amazon headquarters and exchange an AMZ share for an office chair? as a physical asset? i have a feeling that security will escort you from the building before you finish the transaction. the only intrinsic value will be the bruises on your wrists. edit: the value of the share (in the old good days) is the discounted cash flow. you invest in a business, then business pays you the share of the profits (hence - share) in the form of dividends. AMZ share does NOT pay any dividends, nor does grant you any voting rights. nothing. zero. this is your intrinsic value.
      - shkkmo 9y ago
        > can you go to amazon headquarters and exchange an AMZ share for an office chair? If the total value of share prices drops below the value of the assets, you can buy all the shares, take the company private and sell off all the assets to make money. Assets (vs liabilities) thus can put a floor on the value of a stock price.
        shitgoose 9y ago
just_one_time_ 9y ago
For anyone that does not understand Bitcoin their go to argument against it is its a bubble. It is also the easiest way to stop an idiot these days, a clear sign the person is unwilling to learn anything new.

by brwsr 9y ago

smt88 9y ago

Sure, any bubble can pop. But unlike some other assets, like houses, many popular cryptocurrencies currently have little-to-no intrinsic value.

shitgoose 9y ago
does an AMZ share have an intrinsic value?
- the_gastropod 9y ago
  ....yes https://www.investopedia.com/terms/i/intrinsicvalue.asp https://www.investopedia.com/terms/i/intrinsicvalue.asp
  - shitgoose 9y ago
    yep. the only intrinsic value i get in exchange for 1,300$ AMZ share is the link explaining the value of an intrinsic value. what exactly can you claim from amazon in exchange for a share? except for a kick in a butt from amazon security?
- admax88q 9y ago
  Yes because at the end of the day an share of AMZ means you own a small percentage of that company. That includes a small percentage of all their physical assets, servers, real estate, cash on hand etc. So yeah there is some intrinsic value.
  - CryptoPunk 9y ago
    Exactly. Cryptocurrency valuations at the moment are 99% speculation about future utility. Actually it may be 99.9%.
    - mulmen 9y ago
      Pet peeve: made up numbers. Why not just use an adverb? Yes, I spend a lot of time annoyed.
      - CryptoPunk 9y ago
        Yes I should have said "on the order of 99%". I think generally figures like "99%", when used in this context, imply that this is an approximate value, but I agree that it's better to explicitly state that.
  - shitgoose 9y ago
    can you go to amazon headquarters and exchange an AMZ share for an office chair? as a physical asset? i have a feeling that security will escort you from the building before you finish the transaction. the only intrinsic value will be the bruises on your wrists. edit: the value of the share (in the old good days) is the discounted cash flow. you invest in a business, then business pays you the share of the profits (hence - share) in the form of dividends. AMZ share does NOT pay any dividends, nor does grant you any voting rights. nothing. zero. this is your intrinsic value.
    - shkkmo 9y ago
      > can you go to amazon headquarters and exchange an AMZ share for an office chair? If the total value of share prices drops below the value of the assets, you can buy all the shares, take the company private and sell off all the assets to make money. Assets (vs liabilities) thus can put a floor on the value of a stock price.
      - shitgoose 9y ago

just_one_time_ 9y ago

For anyone that does not understand Bitcoin their go to argument against it is its a bubble. It is also the easiest way to stop an idiot these days, a clear sign the person is unwilling to learn anything new.