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Seeing as stonks trade for often >40x the company's actual output, sounds pretty similar, doesn't it? Most coins should be worth a fraction of their traded valu
by andirk 4y ago
Seeing as stonks trade for often >40x the company's actual output, sounds pretty similar, doesn't it? Most coins should be worth a fraction of their traded value, and the same with Wall Street. The keyword is speculation that it will eventually catch up to its bullshit traded value. We learned that in 2008, and a lot of people lost their savings and the roofs over their children, then a few years later we completely forgot and now act like crypto invented the idea of trading bullshit.
- ffssffss 4y agoSure, it's kind of like really crappy penny stocks that are in danger of being delisted and probably doing fraud. But real companies have cashflows and assets, get audited by real auditors, hire real employees instead of teenage "anons", etc. It's actually pretty different!
- andirk 4y agoAgreed. Shitcoins are like pennny stocks but not even audited or held to much scrutiny at all. It's more like investing in a github repo. There are, however, plenty of real projects backed by real money with real employees, open books, and have proven resilient over these handful of years. If the economy gets pumped full of fakeass USD causing stonks and crypto to triple up, I'm not going to be one to say "Yeah that value is so real". My fave stonk Square (SQ) (I refuse to call it block), has net me several boatloads of money since day 1, and now it's dropped to only a couple boatloads. Does that mean it's now bullshit? No. It means the economy has a mind of its own and let's not pretend it makes much sense. It's more powered by emotion and guessing than actual worth.
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- RC_ITR 4y ago> There are, however, plenty of real projects backed by real money with real employees, open books, and have proven resilient over these handful of years. Citation needed, especially considering what’s been going on with BNB
- dinkumthinkum 4y agoWell, right. And real companies don’t just have cheer leaders on YouTube making videos of being on team “X-coin” and having tons of followers like a cult trying artificially prop up the value so they can dump it on sone sucker. It’s really amazing.
- oneoff786 4y ago> Seeing as stonks trade for often >40x the company's actual output, sounds pretty similar, doesn't it? Most coins should be worth a fraction of their traded value, and the same with Wall Street. Well for one “40x their output” is meaningless. Ideally stocks are valued at their expected net present value of future dividends; implicitly assuming it’s baked in for growth stocks. Second, I don’t care at all what you think is overvalued. The question was “why was this thing valued without crypto fundamentals?” And the answer is because the market cares very little for those things.
- dinkumthinkum 4y agoWhat is happening in crypto is that libertarian and other anti-“the system” nerds are just rediscovering scams and schemes from the 1800s.