Re:Sam Bankman-Fried vs. the Match King
by deltree7 on Sunday November 13, 2022 @12:50PM
(#33585386)
Public companies sell products that people actually pay money to use.
You can literally look at the Top line audited Revenue.
Can companies be overvalued? absolutely, just like how it can be massively undervalued (e.g META)
crypto, gold, art are asset classes that don't produce anything. So, you have to find other suckers to pay higher. But all three is based on scarcity. So, it is a supply/demand philosophy (vs cash generating assets like Bonds, Stocks, Real Estate). At least BTC/ETH/Art/Gold has natural supply limits, so the only unknown is demand. How do you induce demand? By telling stories about the asset class.
You can literally look at the Top line audited Revenue.
Can companies be overvalued? absolutely, just like how it can be massively undervalued (e.g META)
crypto, gold, art are asset classes that don't produce anything. So, you have to find other suckers to pay higher. But all three is based on scarcity. So, it is a supply/demand philosophy (vs cash generating assets like Bonds, Stocks, Real Estate). At least BTC/ETH/Art/Gold has natural supply limits, so the only unknown is demand. How do you induce demand? By telling stories about the asset class.