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>It moves around specialty tokens that people speculate are worth that much money. If a particular item can be sold at a particular amount with predictable and
by 0xy 5y ago
>It moves around specialty tokens that people speculate are worth that much money.
If a particular item can be sold at a particular amount with predictable and transparent liquidity it is objectively worth that amount.
Ford doesn't speculate a Ford F-150 is worth $30k, they have customers lined up with cash in hand ready to buy and waiting lists (liquidity), therefore they are objectively worth $30k.
You wouldn't say 1 share of Amazon stock is speculatively worth $3,205. It's objectively worth that, because there's liquidity and an order book right now that will buy it for that price.
- dmitriid 5y ago> ou wouldn't say 1 share of Amazon stock is speculatively worth $3,205. It's objectively worth that --- start quote --- https://www.investopedia.com/terms/s/speculation.asp https://www.investopedia.com/terms/s/speculation.asp In the world of finance, speculation, or speculative trading, refers to the act of conducting a financial transaction that has substantial risk of losing value but also holds the expectation of a significant gain or other major value. --- end quote --- Crypto is the very definition of speculative trading. And yes, stocks are as close to be to that as to be indistinguishable in my opinion