re: Trump fans confused how their investments in his crypto/Stock are now worth a Fraction

Posted on 7/7/26 at 4:12 pm to CleverUserName

Posted by soonerinlOUisiana

South of I-10

Member since Aug 2012

2530 posts

Posted on 7/7/26 at 4:12 pm to CleverUserName

quote:
You really want a subject to ponder? What makes that 20 in your wallet really, actually, worth 20 dollars?

But that’s just it. My $20 will always be a $20 no interest note to the federal reserve. And its purchasing power is based on how much goods/services a seller is willing to render for it. What I don’t get is, what makes your one bitcoin worth $1 today, $2 a year from now, or $0.10 a year after, other than the fact that that’s just what people are willing to pay for it. At least with highly appreciated speculative stock, there’s the anticipation that the underlying business model will produce a lucrative revenue stream at some point, which powers the demand. Seems like with crypto, it’s merely a casino game where the chance/hope is that you’ll someday sell it for more than you paid for it. Yeah, arguably the stock market is the same, but as I said, stocks at least have an underlying business, absent a scam, of course.

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Posted by CleverUserName

Member since Oct 2016

17869 posts

Posted on 7/7/26 at 4:50 pm to soonerinlOUisiana

Well the quote I posted wasn't for comparison. It was just a "makes you go hmmm" question. Ultimately the answer to that is because both you and I say it's worth 20 dollars. In the most simple of explanation.

Don't think of bitcoin vs dollars. Think of it more of bitcoin vs stock. Bitcoin has value due to it having an agreed value and a unit of exchange. Ultimately you go right back to the day 1 economics class where you were introduced to the supply and demand curve. Same thing that values stock. Same thing that values the 1983 Corvette sitting in a museum in Bowling Green, KY. Bitcoin, like stock and that lone 83 Corvette, has a limited number that will ever be in existence. When you get an agreement that you can trade it. Boom. It has value. Even Confederate States of America cash has value. Even though it's a dead currency. Same principle.

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