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This mentality was common with penny stocks around 1998 (maybe still true). But the belief (and reality) was that you just didn't want to be left holding the ba

This mentality was common with penny stocks around 1998 (maybe still true). But the belief (and reality) was that you just didn't want to be left holding the bag at the end. If you got in low enough and got out soon enough, that's all you wanted. So it was all pump and dump. No one believed in the companies, but they believed they could be in early enough and out just in the nick of time. At a larger scale, I'm not sure the difference with the NYSE or NASDAQ. I don't vote w/ any of the companies for which I own stock. I just hope I buy low and sell when it is much higher -- just the volumes are large enough that small players can't pump the value of the stock -- but reddit and TikTok has shown even this world can be gamed.

cwmma 4y ago
One difference with NYSE or NASDAQ is that those companies could release a dividend or get bought and either of those events would put actual hard currency in your pocket and the price of the stock is (theoretically) based on those events happening.
avianlyric 4y ago
On difference is dividends stock buybacks, and physical assets. Companies can support higher valuations buy owning more stuff, if their market cap is lower than the stuff they own, then they’re clearly underpriced. If a company starts paying out higher dividends due to higher profits, then their stock is worth more because otherwise the dividend repayment would trend towards zero (i.e. dividend payment per share ends up larger than the share price) If a company is doing stock buybacks, then they’re using their profits to prop up the price of their shares. But in all of these scenarios, the companies are producing profits, which are directly or indirectly used to pay for the increase is share value. Shitcoin on the other hand are zero sum, they produce no new value from their existence, they just store value and move it around a little bit.
- solarkraft 4y ago
  You're talking about current value - true, companies have that - but a huge part of stock prices are expected future value, which (by its nature) can be quite speculative.
  - avianlyric 4y ago
    Well sure. But it’s substantially less speculative than shitcoins. Some degree of skill can be used to understand if a specific company is going to improve its situation long term via sound investments in new projects. You can look at companies stated goals and strategy and decide for yourself if those goals are valuable and if the strategy is viable. And thus make an educated call about future value (with appropriate error bars). With shitcoins there’s nothing to analysis. They fundamentally don’t do anything. Speculating on shitcoins is just trying to guess what a disorganised mass is going to do in the future. There’s no reasonable way to gain any understanding of what their behaviour is going to be, and if it’s going to increase or decrease the value of the shitcoin, because it’s a disorganised mess. Ultimately the value of a company present and future derived from the fact that it’s organised, and broadly predictable. Shitcoin value isn’t driven by anything organised, or predictable.
- 8note 4y ago
  Owning stuff is a bit challenging though. Say Tesla has access to a bunch of Bitcoin; how much is Tesla worth as a result?
mox1 4y ago
This is the mentality of a family member of mine who was in early on BTC but also sold early (Liked mined lots at 10cents each, sold all at $10 each). He is up on every new shit-coin, he spouts a little bit about the world changing proposition, he basically does it because "hes not missing out again". His idea is to drop $100-$1000 as early as possible (like at the ICO or pre-buy whatever) and hope one of these things 100x'es. Part of him knows this is a fools game, but he is "smarter" and still doesn't want to be left out yet again.
- wpietri 4y ago
  People like this just kill me. I don't know how many people remember it, but in the 1990s there was a fad for WWJD bracelets, with 10s of millions sold: https://www.mortaljourney.com/2010/11/1900-century/1990-trends/wwjd-bracelets https://www.mortaljourney.com/2010/11/1900-century/1990-tren... In 1999 I met a guy who had missed out on a business opportunity around those. He had just bought into what he was sure was the next big thing: Y2K bracelets, which here stood for "Yield 2 King". He was sure that god was sending him this opportunity. Even then I felt bad for him.
- twiceaday 4y ago
  I had an Uber driver just like this. Missed out once, never again. He also gave me card with a referral code for some shitcoin that you 'mine' by tapping the app once an hour.

cwmma 4y ago

One difference with NYSE or NASDAQ is that those companies could release a dividend or get bought and either of those events would put actual hard currency in your pocket and the price of the stock is (theoretically) based on those events happening.

avianlyric 4y ago

On difference is dividends stock buybacks, and physical assets. Companies can support higher valuations buy owning more stuff, if their market cap is lower than the stuff they own, then they’re clearly underpriced. If a company starts paying out higher dividends due to higher profits, then their stock is worth more because otherwise the dividend repayment would trend towards zero (i.e. dividend payment per share ends up larger than the share price) If a company is doing stock buybacks, then they’re using their profits to prop up the price of their shares. But in all of these scenarios, the companies are producing profits, which are directly or indirectly used to pay for the increase is share value. Shitcoin on the other hand are zero sum, they produce no new value from their existence, they just store value and move it around a little bit.

solarkraft 4y ago
You're talking about current value - true, companies have that - but a huge part of stock prices are expected future value, which (by its nature) can be quite speculative.
- avianlyric 4y ago
  Well sure. But it’s substantially less speculative than shitcoins. Some degree of skill can be used to understand if a specific company is going to improve its situation long term via sound investments in new projects. You can look at companies stated goals and strategy and decide for yourself if those goals are valuable and if the strategy is viable. And thus make an educated call about future value (with appropriate error bars). With shitcoins there’s nothing to analysis. They fundamentally don’t do anything. Speculating on shitcoins is just trying to guess what a disorganised mass is going to do in the future. There’s no reasonable way to gain any understanding of what their behaviour is going to be, and if it’s going to increase or decrease the value of the shitcoin, because it’s a disorganised mess. Ultimately the value of a company present and future derived from the fact that it’s organised, and broadly predictable. Shitcoin value isn’t driven by anything organised, or predictable.
8note 4y ago
Owning stuff is a bit challenging though. Say Tesla has access to a bunch of Bitcoin; how much is Tesla worth as a result?

mox1 4y ago

This is the mentality of a family member of mine who was in early on BTC but also sold early (Liked mined lots at 10cents each, sold all at $10 each). He is up on every new shit-coin, he spouts a little bit about the world changing proposition, he basically does it because "hes not missing out again". His idea is to drop $100-$1000 as early as possible (like at the ICO or pre-buy whatever) and hope one of these things 100x'es. Part of him knows this is a fools game, but he is "smarter" and still doesn't want to be left out yet again.

wpietri 4y ago
People like this just kill me. I don't know how many people remember it, but in the 1990s there was a fad for WWJD bracelets, with 10s of millions sold: https://www.mortaljourney.com/2010/11/1900-century/1990-trends/wwjd-bracelets https://www.mortaljourney.com/2010/11/1900-century/1990-tren... In 1999 I met a guy who had missed out on a business opportunity around those. He had just bought into what he was sure was the next big thing: Y2K bracelets, which here stood for "Yield 2 King". He was sure that god was sending him this opportunity. Even then I felt bad for him.
twiceaday 4y ago
I had an Uber driver just like this. Missed out once, never again. He also gave me card with a referral code for some shitcoin that you 'mine' by tapping the app once an hour.