4 ms·

I think I have figured crypto currencies out, I mean I have a theory. The old school people, bankers and what not, cannot wrap their heads around exponential gr

I think I have figured crypto currencies out, I mean I have a theory. The old school people, bankers and what not, cannot wrap their heads around exponential growth. That's why valuations of tech companies are confusing to them. And they are using their old thinking to cope with what they consider a huge inflation risk. It's not real (imho) but that's what they see and they think Bitcoin maybe a safe haven. (The whole idea of Bitcoin has to do with slowing things down. The whole thing is a huge brake on what computers do. Whoa, slow down, calculate these n^x hashes first.) (Ok I'm just random internet guy with conspiracy theories I suppose..)

runawaybottle 6y ago
That’s true for a handful of companies. It’s not true for the broader industry where things trade at 30x earnings. Tech gets a pass to trade at those multiples. If any insurance or financial company add ‘tech’ at the end (fintech, insurancetech), they get this pass for some reason. If Hershey came up with candytech, it too would be allowed to trade like that. This is a serious bubble if we keep playing games like this. We know how ridiculous this can be from GameStop, where it has no business trading above $100, but somehow is doing it. Game tech.
pjc50 6y ago
If there's one thing the traditional banking industry can understand, it's compound interest. Which is exponential growth. What they have trouble with is exponential growth at very high rates, which nearly always implies very high risk.
- SideburnsOfDoom 6y ago
  > What they have trouble with is exponential growth at very high rates, which nearly always implies very high risk. Correct, traditional banking "has trouble" with exponential growth at very high rates. Which means that actually, they do understand something fundamental about it.

4 ms·

I think I have figured crypto currencies out, I mean I have a theory. The old school people, bankers and what not, cannot wrap their heads around exponential gr

by apples_oranges 6y ago

runawaybottle 6y ago
That’s true for a handful of companies. It’s not true for the broader industry where things trade at 30x earnings. Tech gets a pass to trade at those multiples. If any insurance or financial company add ‘tech’ at the end (fintech, insurancetech), they get this pass for some reason. If Hershey came up with candytech, it too would be allowed to trade like that. This is a serious bubble if we keep playing games like this. We know how ridiculous this can be from GameStop, where it has no business trading above $100, but somehow is doing it. Game tech.
pjc50 6y ago
If there's one thing the traditional banking industry can understand, it's compound interest. Which is exponential growth. What they have trouble with is exponential growth at very high rates, which nearly always implies very high risk.
- SideburnsOfDoom 6y ago
  > What they have trouble with is exponential growth at very high rates, which nearly always implies very high risk. Correct, traditional banking "has trouble" with exponential growth at very high rates. Which means that actually, they do understand something fundamental about it.