Quote:
Originally Posted by zamler
People panic and sell stocks because of rumour or their cat hacked up a hair ball don't see why crypto is any different.
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A traditional economic view would be that normal stocks have a base value due to the inherent utility of the thing they make, how efficient they are at making it compared to the competition, how much competition there is etc.
Boeing might be in trouble right now but they still have orders, they still make money, pay a dividend and in some period of time people will start flying again airlines will buy planes and Boeing's stock will rise, the problem with crypto, or any other currency is the value is solely based on perception of value, there is no bottom for a currency which is why you would never 'invest' in a currency normally, you might look to trade on its short term fluctuations or if it was stable park your wealth in it while looking for an investment to move it to, and that's with a Government backed currency where you could reasonably expect them to defend the price, crypto doesnt even have this, any crypto could lose all value and cease to be a 'thing' in fact it is certain that in a year or two most cryptocurrency's will have disappeared, what you and others are betting on right now is which, if any, survive.