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Doge warning
- Thread starter cjnowell72
- Start date
I think that at the root of this lies the fact that most people don't understand the difference between price and value. Price and value are two entirely different things that only sometimes coincide. Price is just the amount of wealth that someone is asking in exchange for something whereas value is the fundamentals of how beneficial something is to humanity.
As an example, if you paid $100 for a Big Mac that wouldn't then mean that your Big Mac is really fundamentally worth 20 times that of any other Big Mac; it just means that you overpaid for the sandwich. As another example, if someone who didn't know much of anything about guns decided that they'd be willing to sell their late Grandpa's vintage Colt Python to you for $300 and you accepted that deal, that doesn't mean that your Colt Python is worth several times less than any other vintage Colt Python. These are both examples of something's price being dramatically different from its value.
The free market has something called price discovery, where it generally results in the price of things sold getting close to their fundamental value. Because of this, many people incorrectly believe that if something is priced at a certain amount that therefore it must be worth that much too. The two major issues with this thinking are that we don't live in a free market, and even the free market can make mistakes because its composed of flawed individuals. Financial bubbles form even in free markets, and these bubbles are examples of price and value being dramatically different.
So, back to crypto. Many people don't even know that price and value are two different things. They just see that the price of crypto currencies are up and therefore they must be fundamentally worth that asking price because to them price and value are the exact same thing. They have a way they view finance which prevents them from being able to stop and think "I'm doing real work and in exchanging for my work I'm receiving paper the government printed. Then I'm exchanging that paper the government printed for some 0s and 1s on a computer." They don't realize that the paper they work for doesn't have any inherent value, nor do most of the crypto currencies they're trading that paper for.
There are some crypto currencies that have fundamental value. An example of this would be LBC - it is a crypto currency used by the LBRY program which is a decentralized media sharing platform. Content can be promoted on this platform exclusively through the use of the LBC crypto currency. There is fundamental value in the attention of other people, and this LBC can be used to gather some attention from the users of the LBRY program; this give LBC some fundamental value. Other crypto currencies like Bitcoin, which only functions as a currency and nothing else, don't have any fundamental value. Proponents of Bitcoin will point out its scarcity, but scarcity alone doesn't give something value.
What exactly does the federal government back it with? The gold standard has been gone since the 1971. The only possible thing they can back it with is land holdings and thats already being used as a security for China lending the US money.
This is one reason so many different cryptos exist. If you get on coinbase it will actually tell you what each one is used for if you want to buy it or if you already own it, convert it to another crypto.
I find it’s best to not join the crowd... pretty much do the opposite.
Like when I told a few close friends to snag a few cases of brass 9mm fmj’s when they were cheap and stacked... they didn’t listen lmao
Like when I told a few close friends to snag a few cases of brass 9mm fmj’s when they were cheap and stacked... they didn’t listen lmao
Being a contrarian is usually what ends up being the smart decision when it comes to investing.
I just opened a webull account and its telling me I can only make a deposit with checking account or wire transfer I was wanting to use a prepaid card incase my info was comprised anyone have any tips
And to make matters worse its all DIGITAL. So what do you actually own? In my experience if it's digital it can disappear without warning. Kinda like when over the air TV went from analog to digital. In the analog days you could get a picture even if it had a little static. Digital is all or nothing.
Another simple but appropriate analogy for crypto. When you're building hpuses or any other big project the supply stores will deliver your materials. But as we all know sometimes those same delivery guys will come back in the middle of the night and steal those materials. I feel the same way about crypto guys. After all the guy guys that came up with it obviously know more about it than the folks they sell it to. So how easy would it be for them to take it back when you aint looking ?
found this when I was peeing in Gainesville at RaceTrac to the moon!
