Bitcoin hit a high of $8,458 today on coinbase. I'm calling it. This is the end of Bitcoin
- Thread starter peilthetraveler
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No what matters is that we here at ET are traders, we make a living of taking risks and profit from them. What the hell are you doing on this forum, if you ignore opportunities presented to you for free. ET-members who read my posts from 2013/2014, and understood, are now wealthy like me, the others regret.
If I say that the year 2020 will become an interesting year (halving time again), I mean it.
You cannot even read? Man! your beyond help.
Warning from experts aren't ignored. You aren't an expert in this field. And no I don't stop: like to have as many posts as @Pekelo.
You are joking right?
@El OchoCinco, I get what you're aiming to to... but there is a difference between a stock and something like gold or bitcoin.
Of course people buy a financial asset to sell it at a higher price. The difference is that a stock has a fundamental valuation... based on cashflows/future earnings. That's earnings from that the company makes. And it's a fact that you do own part of those earnings as a shareholder... whether the company pays out dividend or not doesn't matter. Any earnings add up in their books/assets....
It has that fools game aspect to it, especially when you're investing in companies that don't seem to be (ever) able to make money... that would be something like SNAP. But there is always the possibility for earnings/cashflow. Or a takeover, where the companies assets (IP or goodwill or whatever) are valued at a certain price... because usually a company has assets...
When they never actually make money and generate earnings... then those companies are in a bubble because of the fools game. Hot potato hot potato... like what happened in the Internet-bubble late 90's.
If a company has no assets that will ever generate earnings or any valued IP, than it should be not worth much... like penny stocks. Except when people start a pump-n-dump, than the price can go from 5 cents to 100 bucks... because those people pumping it up make the ignorant common people believe it has value and it's very low now and can only go up, so you'd better get in now before it's too late... like BTC!
It seems you can't compare BTC to a stock. A company can produce earnings and distribute it as dividends (a small part of it), or a company can keep it all, or they can lose money to expenses.
With BTC - there are not expenses. It's not like Bitcoin has a pile of dollars that it's spending on CEO salaries and warehouses and the like. For Google to exist, it has to spend money. For Bitcoin to exist, it only needs to ... exist!
For USD to exist - it needs the government backing it. If the gubbmint went away, the dollar crashes hard. But there is no entity per se backing up BTC, so it's not like fiat currency, either.
Gold is a better analogy - needs to be mined, once it's out it has the value the market gives it. But, BTC has no physical existence, so... I would argue it's something new.
There is no real analogy that truly works. But stocks are the worst analogy.
I would suggest that there are other intrinsic values than survival in our world. That's a pretty grim outlook, imo.
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