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A true investment has an intrinsic value based on the stream of cash it generates for its owner. That’s “investing”. No crypto currency has any intrinsic value
by valuearb 6y ago
A true investment has an intrinsic value based on the stream of cash it generates for its owner. That’s “investing”.
No crypto currency has any intrinsic value because none gave predictable future cash flows. Buying them is gambooling or “speculation” trying to predict short term price changes.
Note that u belief cryptocurrencies have utility as a medium of exchange, just not intrinsic value.
- willio58 6y agoWebster definition of investing: “to commit (money) in order to earn a financial return” I think your definition of a true investment is more of an opinion than actual fact.
- deleted 6y ago[deleted]
- valuearb 6y agoWho knows more about investing, the editors at Webster’s or Warren Buffett?
- phyalow 6y agoWrong on your point RE FCF, you would be surprised - go and check out Aave it is a decentralized money market - running on USDC (amongst other assets), it generates cash by lending over collateralised loans which gives the depositors a large cut of the fees it takes. The point of an overcollateralised loan is synthetic leverage, or shorting.
- valuearb 6y agoIt appears to be the most technologically advanced Ponzi scheme ever.