Bitcoin update.

[Eric Cartman]

That's the similarity with a Ponzi. When you buy, you need more people to want to buy it. Just as in a Ponzi you need investors underneath you in the pyramid.

Traditional stocks move on company profits, etc, external factors affect it. With crypto, it's only how many people want to buy it. So as soon as you've bought a coin, you need to encourage others to buy.

I'm not trying to be down on crypto, but its value is solely in how many potential buyers there are. At the moment anyway.

I think that is a pretty blinkered look at the current situation. Any asset moves up because more people want to buy it than want to sell it and vice versa. Where does Tesla fit into the idea that stocks move up or down based on the balance sheet? Industries on the cutting edge will always appear extremely volatile.

LTO springs to mind as a crypto which already pays holders a yield entirely funded by businesses using the network i.e. profits

I don't think crypto is for everyone, as the past few weeks have proved you need to be willing to see it as a long term investment into something that might fail. If it does succeed, the potential upside is massive compared to traditional assets.

[lardy]

I think that is a pretty blinkered look at the current situation. Any asset moves up because more people want to buy it than want to sell it and vice versa. Where does Tesla fit into the idea that stocks move up or down based on the balance sheet? Industries on the cutting edge will always appear extremely volatile.

LTO springs to mind as a crypto which already pays holders a yield entirely funded by businesses using the network i.e. profits

I don't think crypto is for everyone, as the past few weeks have proved you need to be willing to see it as a long term investment into something that might fail. If it does succeed, the potential upside is massive compared to traditional assets.

Yes, Tesla is volatile and rose far too quickly based on a lot more than just profit or loss. But as long as Tesla is in business and selling cars, then its stock will always have some value. It'll never be worthless, it'll never trade at 0.001c. But any crypto could.

I'm not shitting on crypto, I agree that it has massive potential. But at the moment, the current situation, the only value that it has, the only reason that 99% of buyers want it, is that they want it to go up in value. When they realise it is mainly dropping in price (and BTC is right now) many will sell as its not doing what they want, and the price will drop further. This is squeaky bum time for those who hold it.