Why you can’t cash out part 1: Bitcoin’s “price” is largely fictional

Re:Why you can’t cash out part 1: Bitcoin’s “price” is large... by arcticfox on Sunday December 17, 2017 @09:28PM (#15948976)

But the stock market - in general - has ridiculously profitable and powerful entities behind it. No matter what happens to investor confidence, ownership of Apple is going to be very valuable because they generate a ridiculous amount of profit.

Cryptos, on the other hand, are entirely based on investor confidence.

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Re:Why you can’t cash out part 1: Bitcoin’s “price” is large... by Cakez0r on Monday December 18, 2017 @07:43AM (#15951224)

It's not a given that Apple will continue to generate insane profit. Apple will remain very valuable because it has tangible assets that can be sold (book value). So with a total lack of investor confidence, the price floor of Apple shares should be book value - debts.

Cryptocurrencies aren't backed by tangible assets, so the price floor is 0.

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Re:Why you can’t cash out part 1: Bitcoin’s “price” is large... by twelve40 on Monday December 18, 2017 @08:21AM (#15951396)

I'm not sure a neat definition of a price floor always holds in practice. Wasn't Yahoo at some point valued less than their tangible assets/stake in Alibaba?

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Re:Why you can’t cash out part 1: Bitcoin’s “price” is large... by baddox on Tuesday December 19, 2017 @01:05PM (#15962276)

I suspect that it’s a bad idea to make investments based on how high the cost floor of the investment is.

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Re:Why you can’t cash out part 1: Bitcoin’s “price” is large... by victor106 on Monday December 18, 2017 @12:50PM (#15953568)

Cryptos imho are equal to gold not stocks

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