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> What’s a share of SNAP entitle you to exactly? Ah right, you think someone will buy it for more. Ultimately you think someone will pay more for a future shar
by majormajor 5y ago
> What’s a share of SNAP entitle you to exactly? Ah right, you think someone will buy it for more.
Ultimately you think someone will pay more for a future share of SNAP than of [OTHER THING] because you think SNAP's growth story is better, business model is promising, blah blah blah.
We may be trading on the derivatives of the fundamentals, or even the hope of future fundamentals, but even that's turning back some as it's been harder to get a big huge IPO purely on hope than it was in the recent history. Throw WeWork in against Snap there, even. Gambling but against numbers that will eventually be reconciled with performance with customers, not just other gamblers. Though personally I'm certainly hoping that some of that "eventually" starts to turn back into a backlash against dual-class stocks.
The equities market is still ultimately betting that at some point, the business results will keep the stock comparatively more attractive.
There's vague talk about "the backbone of future banking systems" or such for crypto as having similar fundamental value, but I haven't been convinced. Particularly, I'm not convinced today's big chains would be what the future would be built on - why pay the huge transaction costs and help the current crypto-rich get richer, instead of making purpose-built chains for your future applications?
- wallacoloo 5y ago> why pay the huge transaction costs and help the current crypto-rich get richer, instead of making purpose-built chains for your future applications? the most convincing arguments i’ve heard for reusing an existing chain is 1) easier access to users, 2) easier to deploy and 3) if your application needs decentralization, a mature blockchain will be more secure (attacks like 51% attacks have higher cost) and reliable (in the uptime sense) than something you can deploy yourself. > There's vague talk about "the backbone of future banking systems" or such for crypto as having similar fundamental value another argument is that many cryptos are valuable because of “regulatory arbitrage”. bitcoin/monero/zcash are all easy ways to (partially) shelter your money from tax and legal regulations (hence why they are/were largely associated with drugs).
- chii 5y agoThe regulatory arbitrage is a lie they tell themselves. Sure, drugs could be paid for by cryptos, but the ultimate utility of that money requires it to be transferred to fiat (aka, laundering). Unless all of your goods and services can be purchased using only crypto, the tax man and the gov't will always have this weak spot to target.
- _aavaa_ 5y agoIt's worse than that. Even if ALL your goods an services can be paid in crypto, the government can always demand that taxes be paid in fiat.