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It's sad people are so financially illiterate. Buying partial ownership (shares) in a real company that makes a product or service profitably, or loaning money
by bodiekane 3y ago
It's sad people are so financially illiterate.
Buying partial ownership (shares) in a real company that makes a product or service profitably, or loaning money to a person or business that will be paid back with interest, are both ways to invest capital which can increase in value with no "greater fool".
Apple stock isn't worth more today than in 1990 because people arbitrarily agreed upon a bigger number, it's worth more because they've innovated and grown and now sell expensive products to a billion customers around the world.
Crypto tokens, NFTs, beanie babies, rare coins, paintings only increase in value if some greater fool comes along to pay more than you paid for it. At least with a painting or a beanie baby you could display it in your house, I guess.
- hereme888 3y agoThe use case for the NFT thing has been so sad. I thought it would give rise to some sort of decentralized ID tech, but all it amounted to in the real world was mutant gorilla pictures. And then you have a bunch of competing blockchains with significantly different underlying code, so how does anything get standardized?
- elwell 3y agoIt's the same fundamental thing. Apple stock is worth more because future people believe it to be worth more. The 'why' behind that is also the same: people believe that the product has value. Even deeper, people believe that their life has value. It's all the same fundamentally.
- Devasta 3y agoEven if no one on the planet was willing to buy apple shares from you, you still have something generating income through dividends. Bitcoin requires an ever-growing list of rubes to buy in.
- ksjskskskkk 3y agoyou missed the point. yeah some numbers to up because company sold products. but everyone who bet on coke instead got richer. go diabetes!
- guil177 3y agoThere is coca zero.