Re:Magic Doesn‘t Happen, Especially Not in Business
by fennecfoxen on Friday May 27, 2022 @09:25PM
(#31536764)
There are equivalent cases in the meme stock world. GameStop, in particular, had an abnormally high market cap because of anomalous trading. If you hold onto it forever all you have is a dumb little videogame sales company worth a fraction of what you paid for it.
Meme stocks are quite interesting in that they are essentially like blockchain-driven asset bubbles, but without the blockchain. This has many advantages! It’s quite easy to trade stocks.
Re:Magic Doesn‘t Happen, Especially Not in Business
by darkerside on Friday May 27, 2022 @09:42PM
(#31536855)
Well, if you literally owned every dollar in existence, those would become worthless pretty fast, too.
Re:Magic Doesn‘t Happen, Especially Not in Business
by CPLX on Saturday May 28, 2022 @12:22AM
(#31537586)
That’s right. And dollars don’t have a “market cap” either.
Nobody “invests” in literal dollars because they aren’t a productive investment either.
Re:Magic Doesn‘t Happen, Especially Not in Business
by darkerside on Saturday May 28, 2022 @08:20AM
(#31539747)
That's different from trying to imply that crypto is worthless and can't store value
The market cap has some relationship (not 1:1 but strongly correlated) to what you’d have to pay to get all that stuff. And if you’d had that stuff you’d be rich. Because those things, together, are intensely valuable and capable of producing cash flow.
By contrast if you bought up 100% of a specific cryptocurrency you’d have nothing. Like absolutely nothing at all.
This is literal. Do a thought experiment and decide what would happen if somehow you suddenly took possession of every single Bitcoin in existence and nobody else could get one without you giving it to them. What, exactly, do you think would happen then?