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Market cap is a bad way to judge the real value of anything. If you were to sell 50% of all the bitcoin floating around in the world, how much would you impact
by totalZero 6y ago
Market cap is a bad way to judge the real value of anything.
If you were to sell 50% of all the bitcoin floating around in the world, how much would you impact the price? Would it remain above 40k? 30k? 20k?
What's the cost basis of all the bitcoin holdings in the world?
If the US government cracks down on bitcoin purchases by public companies, what happens to the price of bitcoin?
Skeptics aren't skeptical because of lacking adoption, so they aren't going to be swayed by increasing adoption either.
Also, Facebook isn't some magical Rubicon for asset valuation. It's a company that sells ads.
One of the fundamental problems with "things are going good, what could go wrong?" is that inevitably, every crash is clearest in retrospect.
- worker767424 6y agoWould you rather buy all the shares of Facebook for $1 or all the bitcoin?
- Sinbe 6y agoShares of Facebook for sure. Bitcoin's value is in the network effect, you can easily create a bitcoin clone but it's worth nothing if you are the only one hogging all the coins.
- rkagerer 6y agoAgree but for a slightly different reason. If I acquired all the Facebook shares I could do the world a favor and kill off the company.
- worker767424 6y agoIt's hard to make that call when you're making life-changing money every day. Alternatively, you could completely change the company's focus.