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This is an oversimplification of already simple market dynamics. What sets the market is the supply and demand. If demand drops sharply after an event like covi
by foxtr0t 6y ago
This is an oversimplification of already simple market dynamics. What sets the market is the supply and demand. If demand drops sharply after an event like covid-19 and supply is held constant, prices will go down except in extremely distorted markets like the ones ISPs and telcos play in.
- jedberg 6y agoThere are two parties to the transaction. The market clearing rate is set when the two parties agree. When one party is not showing up, there is no market clearing rate. The intrinsic value may in fact be down, but there is no way to know for sure without two parties in the transaction.
- pascalxus 6y agoOver time, he's right in principle. But maybe, there just hasn't been enough time yet for it to play out. if we're seeing price declines, then it's already playing out.