Why it’s usually crazier than you expect

Re:Why it’s usually crazier than you expect by anonisko on Sunday January 31, 2021 @03:32AM (#25977151)

Except that it can be arbitrarily inflated.

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Re:Why it’s usually crazier than you expect by sverhagen on Sunday January 31, 2021 @05:30AM (#25977751)

Asking in earnest: how's that not true for crypto, like what Musk did to Doge?

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Re:Why it’s usually crazier than you expect by anonisko on Sunday January 31, 2021 @01:50PM (#25981376)

Musk didn't inflate Doge. He tweeted about it and a bunch of get rich quick folks scrambled to buy, driving the price up like a penny stock.

A share of stock represents a tiny percentage share in a company's assets and profits. For simplicity, let's say a company has 100 shares, and you own 1 share or 1%. If they then issue 100 new shares and sell them on the market to raise cash, your ownership in the company has been diluted from 1% to 0.5%.

That's why company shares will never be safe as an arbitrary store of value like bitcoin is. No one can arbitrarily dilute your share of the bitcoin pie.

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Re:Why it’s usually crazier than you expect by girvo on Sunday January 31, 2021 @09:11AM (#25978923)

I think they mean more stock can be issued, rather than the value being driven up.

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