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Sludgeyy@lemmy.world ⁨1⁩ ⁨day⁩ ago

Same can be said about traditional stock markets. The prices are entirely fictional there, too.

Not true at all.

Microsoft has 7.4B stocks outstanding.

Microsoft has a valve as a company.

Owning 1 stock gets you 1/7.4Bth of the physical company.

If Microsoft goes bankrupt or dissolves you could get some value out of your share.

There are 19.9M BTCs

BTCs have no intrinsic value

Owning 1 BTC gets you 1 BTC

If BTC goes under you get nothing

The stock market does have artificially inflated/deflated prices but they are roughly based on a company’s value. The stock is backed by the company.

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untakenusername@sh.itjust.works ⁨1⁩ ⁨day⁩ ago
I agree with some of what you’ve said but not all

Bitcoin has intrinsic value because its simply more practical for society to collectively hallucinate that it’s valuable, because it allows for more trade. And at the same time, its deflationary, causing that collectively hallucinated value to increase over time. The only case in which Bitcoin could ever fall to zero would be in a 51% attack if the attacker chose to double spend a ton of coins, hyperinflation the currency - but that would never happen, because it would be super expensive, and because its not in the attackers economic interest, so it makes sense to rule out that scenario. This is arguably less likely than nuclear war.

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untakenusername@sh.itjust.works ⁨1⁩ ⁨day⁩ ago
I agree with some of what you’ve said but not all

Bitcoin has intrinsic value because its simply more practical for society to collectively hallucinate that it’s valuable, because it allows for more trade. And at the same time, its deflationary, causing that collectively hallucinated value to increase over time. The only case in which Bitcoin could ever fall to zero would be in a 51% attack if the attacker chose to double spend a ton of coins, hyperinflation the currency - but that would never happen, because it would be super expensive, and because its not in the attackers economic interest, so it makes sense to rule out that scenario. This is arguably less likely than nuclear war.

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untakenusername@sh.itjust.works ⁨1⁩ ⁨day⁩ ago
I agree with some of what you’ve said but not all

bitcoin has intrinsic value because its simply more practice for society to collectively hallucinate that its valuable, because it allows for more trade. and at the same time, its deflationary, causing that collectively hallucinated value to increase over time. The only case in which Bitcoin could ever fall to zero would be in a 51% attack if the attacker chose to double spend a ton of coins, hyperinflation the currency - but that would never happen, because it would be super expensive, and because its not in the attackers economic interest, so it makes sense to rule out that scenario. its arguably less likely then nuclear war

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gazter@aussie.zone ⁨1⁩ ⁨day⁩ ago
There is no physical company. I can’t eat Microsoft any more than I can eat a Bitcoin, as much as I might want to.

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- Sludgeyy@lemmy.world ⁨21⁩ ⁨hours⁩ ago
  A corporation is an entity
  
  It has assets and profit tied to it. The “share” is a share of that.
  
  Is a share worth it is debatable. But the share is a physical piece of the corporation
  
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  - gazter@aussie.zone ⁨20⁩ ⁨hours⁩ ago
    The way I understand it, a physical asset is something you can see and touch, like a house or a hammer. There’s things that a share gives me that BTC does not, but ultimately they are more similar to each other than to something like a physical chunk of gold or a silo full of grain.
    
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    Sludgeyy@lemmy.world ⁨12⁩ ⁨hours⁩ ago
    Yes that’s a physical asset.
    
    Silo full of grain is known as a future or a commodity. I might not have the Silo or the grain physically in my possession, but my note says that I own it.
    
    BTC is a commodity and commodities are very similar to stocks
    
    BTC just isn’t backed by anything
    
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