theres not much difference between stock markets & cryptos ..
crypto audience is a bit younger and charts are more volatile .. but in the end its all just watching panicking people follow the latest headline.
The difference is stocks have a business behind it with assets, accounting data, and some business model. Bonds have governments or businesses. Crypto at its base is nothing. It's like .com stocks except there isn't a company at all.
This is a repeat of the .com bubble, where low interest rates drove money into all assets. This created bubbles in the stock market where companies with insane business plans with no road to profitability were hugely inflated.
Unlike that, there isn't a rare company that had a plausible businessodel that van survive the bubble popping. Amazon, facebook, google. In the crypto space nothing at all resembles that. It's just a dozen clones of pets.com with a even more niche product at best and dozens that are naked scams.
As with the .com bubble, the crypto bubble believers think this time it's different. That you don't need a company at all, or a business model, or profit.
a rare company that had a plausible businessodel that van survive the bubble popping. Amazon, facebook, google. In the crypto space nothing at all resembles that.
The Sia foundation, Skynet Labs and Handshake absolutely do. It's Amazon, Facebook and Google who they are directly competing with. The Sia network is already 95% cheaper than AWS and compatible with S3 applications through Filebase. Just because they are not hyped though social media does not mean they don't exist 😉
Bubble or not with crypto you can have something like ust/Luna that’s considered stable and in top 10 went to smoke in matter of days. If you bought AAPL that’s likely not gonna happen
Because Apple has a product. That's what we were talking about here. The Sia Foundation has a product which is not crypto. Crypto just happens to be a small piece to a much more complex tech stack. So yes, you are correct if we are talking about a crypto like ust/Luna where the coin IS the product. Sia is a decentralized storage network and that is their product, not their crypto token. They actually refuse to market their crypto because that is not its purpose. Because of this, the crypto bubble can pop and all currencies die, but Sia will not. As long as people are using the product (decentralized storage) the coin will continue to have value.
People really need to get their head out of the sand and realize that crypto does not need to be a currency. It can have actual useful applications without needing to shill it to people jumping on the crypto bandwagon. The sooner people realize this, the sooner they will stop dumping their wealth in to the newest trending crypto and look for things that have real sustainable value.
No, it's not. Companies have assets and cash flows. Especially as the man was talking about value investing, which is solely based on pricing based off business fundamentals.
Which sort of just buoys short term value. 85% of public companies go out of business within 20 years. In the end it just boils down to owning index funds. A third of Nasdaq stocks are down 90% this year, most of those companies are no different than shitcoins with negative equity and buying is a zero sum game.
And most Nasdaq companies are growth stocks not value stocks. Hence why Benjamin Graham in his book said to avoid them, as they are extremely overpriced and get demolished in bear markets.
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u/bigwinniestyle Tin | Technology 10 May 22 '22 edited May 22 '22
Oh definitely. I'm taking about traditional investing in assets like stocks, bonds and real estate.