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That's not what fundamentals means in crypto. Fundamentals in crypto are existential, favorable qualities of a token that can survive severe downturns (bear ma
by fleddr 4y ago
That's not what fundamentals means in crypto.
Fundamentals in crypto are existential, favorable qualities of a token that can survive severe downturns (bear markets, depressions).
For BTC, fundamentals are absolute scarcity combined with buy-in/popularity.
For ETH, fundamentals are utility/flexibility and network effect.
For HorneyDonkeyKongCoin, fundamentals are...none. It will go to zero and never come back.
- JumpCrisscross 4y ago> For BTC, fundamentals are absolute scarcity combined with buy-in/popularity This is literally the opposite of the meaning of fundamentals. Absolute scarcity is meaningless; in classical economics, everything is scarce. And popularity are animal spirits.
- darkerside 4y agoSometimes words have different meanings in different contexts.
- fleddr 4y agoWell, words can have different meanings in different contexts. This IS what fundamentals means in the world of crypto. You don't decide on the value of a scarce asset, the owners of the asset do. If you personally believe the nominal value of a scarce asset like BTC is meaningless and thus zero, short it.
- JumpCrisscross 4y ago> words can have different meanings in different contexts I agree. It's just convenient that fundamentals, by this definition, always equals the market price. At which point one asks why there are two words other than for misdirection.