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When this whole thing crashes to the ground it will the digital equivalent of tulip bulbs of Netherlands.
by richwater 1y ago
When this whole thing crashes to the ground it will the digital equivalent of tulip bulbs of Netherlands.
- Fade_Dance 1y agoHow so? Tokenization is securitized, in this case with equities that have a huge and liquid market (the stock market).
- tossandthrow 1y agoWhat? Why does we risk a crash more by using crypto exchanges over regular exchanges? This is an incredibly lazy comment and reads like an involuntary spasm.
- liquidise 1y agoTulip mania lasted 3 years: 1634-1637 in part of a single country. Surely we should keep comparing it to a decades old globalized financial system with formalized state support from many nations and a market cap measurable in the trillions.
- SpicyLemonZest 1y ago"Market cap" as applied to cryptocurrency is a completely fake metric that exists only because it produces viral big numbers. Cryptocurrencies don't have a market capitalization, because they don't represent fractional ownership of any asset; there's absolutely no reason to think that multiplying the most recent price of 1 ETH by the notional supply of 120 million produces a good estimate of the Ethereum network's aggregate value.
- kklisura 1y agoI thought the same, but... I don't think it will ever go down. Stock prices are already divested from the company fundamentals, but they can only get so high, so the next _logical_ step would be to create something entirely divested from the stock prices itself. Enter tokenized stock.
- tossandthrow 1y agoNot really. Some markets are. But when NASDAQ100 trade at PE = 30 I do think it is reasonably discounted cash flow under growth assumptions. But you can trade EU, FTSE100, EM, etc. at a PE range of 15-20. While this is not historically cheap, it is also ont over-rated.
- latchkey 1y agohttps://www.smithsonianmag.com/history/there-never-was-real-tulip-fever-180964915/ https://www.smithsonianmag.com/history/there-never-was-real-...