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"Big serious investors" are also putting hundreds of millions into bitcoin. These are crazy times. There is already over 20% more dollars now than there was las
by leppr 6y ago
"Big serious investors" are also putting hundreds of millions into bitcoin. These are crazy times. There is already over 20% more dollars now than there was last year[1]. If you follow the news you can see the dollar devaluation is likely not going to stop. Lockdowns kept inflation under control by reducing money velocity, but eventually inflation will come and funds are preparing for it however they can.
Rationality based on outdated models doesn't work when the environment is changing.
[1]: https://fred.stlouisfed.org/series/M2 https://fred.stlouisfed.org/series/M2
- tinco 6y agoBitcoin do not represent shares of an actual operating company though. Bitcoin's value lies in how many people want to link their net worth together. Tesla actually has some sort of future final value, at some point it's going to be clear how many cars they're going to sell, how many engines and batteries and solar panels and AI modules and whatnot. At that point they're gonna pay dividends, and that's gonna decide a reasonable price point. And its current share price just doesn't make sense. What are people going to do when they receive 7 cents dividend per year on their 700 dollar stocks? Or is TSLA going to pull an Apple and constantly come up with different types of devices to sell? Forever?