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The stock market continues to go up even though its adoption is already widespread. The reason is that governments continue to print USD, and other currencies,
by bhouston 6y ago
The stock market continues to go up even though its adoption is already widespread. The reason is that governments continue to print USD, and other currencies, which they get invested, re-loaded out, etc. I expect that this can continue in Bitcoin as well for quite some time if there continues to be a shared belief in its intrinsic value.
- Closi 6y agoA shared belief in intrinsic value? What's the calculation then that results in the current bitcoin price without referring to it's existing or historical price? The stock market goes up because you are looking at a market index of the biggest companies, which are growing bigger as markets concentrate. The difference is if you have a share for a year, it earns you a return separate to what happens to the price of the stock (i.e. a dividend), and this is the intrinsic value (i.e. you can do a fundamental analysis of the stock to reach a price). If you hold onto a Bitcoin for a year it might be worth more, but only because the market is pricing it differently, not because of any fundamentals. This is why it does not have intrinsic value.