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The difference is stocks have a reliable basis for going up based on an underlying asset that generates wealth. Most crypto is backed by nothing, some is backed
by TimPC 4y ago
The difference is stocks have a reliable basis for going up based on an underlying asset that generates wealth. Most crypto is backed by nothing, some is backed by other crypto which is also in the end nothing.
- naasking 4y agoGenerates what wealth? Dollar "wealth" which is also backed by nothing. There is no such thing as intrinsic value, value is only ever determined inter-subjectively. Crypto has value as long as people want it, just like every other asset or currency.
- Cthulhu_ 4y ago> The difference is stocks have a reliable basis for going up based on an underlying asset that generates wealth. In theory, in practice it's a supply / demand game that can be manipulated by news, sentiment, and rich people. Tesla does not have the underlying asset that made its stock worth as much as it did. It is/was a small player in the car manufacturing world in terms of sales and profits etc, yet its stocks and the company was somehow worth more than all the other car manufacturers combined.