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There is no requirement that stock price behaves in this way. There is a large speculative component and also a ponzi element (my first point) in the stock mark

There is no requirement that stock price behaves in this way. There is a large speculative component and also a ponzi element (my first point) in the stock market system. "It's not the same thing at all" makes no sense. I'm describing how there are shared elements to both systems. > if the enterprise produces more revenue than a stake of ownership is worth more. And there are many things that a crypto can do to increase its value, for example: 1. Switch to a more efficient algorithm (PoW -> PoS). 2. Increased network effects. 3. Running for a longer time without hacks or the network going down. 4. More projects being built on top.

root_axis 5y ago
> There is no requirement that stock price behaves in this way. Obviously... but the reason you use the language "not a requirement" is because everyone knows that's typically how it works. Obviously there are various factors that impact a stock price, but pretty much all of them are a function of expected future revenue. If Apple were to announce a VR product line tomorrow, the stock price would instantly climb because investors would make a judgement that this new product will generate future revenue. With cryptocurrencies this dimension does not exist. > And there are many things that a crypto can do to increase its value, for example Even if we grant that these things might amplify the utility of a cryptocurrency, it still doesn't change the fact that buying cryptocurrency does not facilitate productive work, it's merely an exchange of value between two people, no wealth is created. When you invest in a company, you're giving it fuel to grow and create wealth by adding desirable goods and services to the economy. I understand that you believe cryptocurrencies provide a useful service, and even if we grant that, buying cryptocurrency does not make it more useful, it's simply shuffling bits around.

root_axis 5y ago

> There is no requirement that stock price behaves in this way. Obviously... but the reason you use the language "not a requirement" is because everyone knows that's typically how it works. Obviously there are various factors that impact a stock price, but pretty much all of them are a function of expected future revenue. If Apple were to announce a VR product line tomorrow, the stock price would instantly climb because investors would make a judgement that this new product will generate future revenue. With cryptocurrencies this dimension does not exist. > And there are many things that a crypto can do to increase its value, for example Even if we grant that these things might amplify the utility of a cryptocurrency, it still doesn't change the fact that buying cryptocurrency does not facilitate productive work, it's merely an exchange of value between two people, no wealth is created. When you invest in a company, you're giving it fuel to grow and create wealth by adding desirable goods and services to the economy. I understand that you believe cryptocurrencies provide a useful service, and even if we grant that, buying cryptocurrency does not make it more useful, it's simply shuffling bits around.