Given the current state of world affairs it is hard to identify any pattern or trend and attribute it properly.
Which cryptos? There are "major" cryptos that take turns taking off for whatever reason. During the most recent collapse, LUNA was taking off. In the past ADA, SOL, MATIC, etc. outran it for a while. ETH has outrun it for periods. I won't even mention the meme coins. In general, for the past few years, anyway, they all pretty much move up and down together no matter what they're involved in (or not involved in). If you want to say they're moving with BTC, ok, I won't argue, but I don't get that relationship, either. I'm just saying they're all clumped together and moving together for the most part, and always have been. I guess the question is if it's crypto, in general, moving or BTC moving and everybody following for whatever reason. None of it makes sense to me. lol.
Every stock or fund I own is because I expect/hope that at some point in the future some "greater fool" is going to want it more than I do.
There are always outliers, but it seems like the entire space moves as a unit, with BTC basically being the flagship/bellweather. That's real strong indicator of how immature/novel the space still is (along with how it continues to move with the markets).
can't recall a time when the leading global economies place such stiff economic sanctions on a rogue state like Russia. cryptos enables Russian co / oligarch to launder their ill-gotten gains, lessening the pain of these stiff economic sanctions.
Right because the stock you're buying is not linked to a company that you can look at financials or metrics for...give me a break. Cryptocurrencies have no intrinsic value.
1) You're moving the goal post. 2) Cryptocurrencies have metrics as well as real & theorized applications that can be measured and evaluated to determine value just like anything else. Not sure where you get the idea that isn't the case.
The hammer you bludgeon someone with can also be used to build a house. https://www.cnet.com/personal-finance/crypto/how-crypto-is-helping-ukraine-resist-russias-invasion/ https://www.theguardian.com/technology/2022/mar/03/bitcoin-donations-cryptocurrency-support-ukraine https://www.washingtonpost.com/technology/2022/03/03/ukraine-cryptocurrency-donations/
I look at the push for regulation a little more optimistically than most. Done right, I think it could be a real boon. But if they go in there and just steamroll over its founding principles (i.e. autonomous & deflationary) then it'll just be a big waste of time.
think again. the BIGGEST attraction has been that Cryptos are not subject to Gov regulation; once that's gone, they'll go the way of pet rocks
We're not in disagreement. As I said, if the US govt tries to make moves toward crypto adoption but in doing so strips away all the key features there won't be much point to it. The odds that a government will be able to make crypto effectively 'go away' is close to zero, though.
Stocks or bonds are generally valued based on some form of value of future profits - you're buying an income stream. If you own Apple stock, you own a share of their future profits. If you believe Apple will generate $200 in future profits per share over the next 20 years, and you buy their stock for $150, even if no one ever bought it from you, you're hoping you have $200 worth of intrinsic value built up in the stock 20 years from now (or distributed as dividends). It's very different from the greater fool theory, which involves things that don't have an intrinsic value. That said, gold could also be said to fit the greater fool theory and it's worked for thousands of years. But crypto and stocks are in no way financially comparable - one is a revenue generating asset while the other is a store of value.
It's funny, I started to try to articulate this point (why comparing crypto to stocks was a bad idea) but I was doing a terrible job and just gave up lol. When you start talking about intrinsic value re: crypto things get hairy really quick, because part of the value/utility is always nested in how many other people are leveraging it. So, folks like to take that and run with it while ignoring all the practical applications. A piece of technology that enables rapid, secure transfer and storage of wealth is useful and so it has some value at a base level, but since its also a currency it plays by a different set of rules than something like a stock and apparently some folks just can't get past that.
Value is subjective. Question is whether people in crypto believe they're investors or speculators. Since 90% of crypto will eventually die I'm guessing it's the latter. The investment thesis is currently weak for almost all crypto which is why you have cultish memes of hodling and diamond hands. 100k predictions are as credible as Armageddon prophesies but you have a driving belief and message that it'll eventually come to pass. Overall I still think there's a ton of potential in crypto as finance is still changing and evolving rapidly. The twenty years it took for us to transition to credit cards then another twenty for mobile Point of Sale adoption like square or PayPal, China did in five. Banks don't even hold ten percent of their cash anymore. It's just IOUs on a ledger. We're all still starting to figure this out
Seems like we already have that technology and it's far more energy efficient. Still seems very niche in application.
