dimanche 23 mai 2021

The difference between Bitcoin and a company

Bitcoin is a strange thing. I'm not really sure what it is. But I know that it's not a company and that it doesn't grow. To me, it's like gold or silver. It's something that we can buy and use it to buy other things. 

So, buying gold is like buying Bitcoin for me. It's speculation. There may be good reasons to buy gold or Bitcoin, but even with a lot of macro-economics information, we don't know how things will go and how people will still think that Bitcoin is the next big thing. Currently, the thing that's related the most to Bicoin's value is Elon Musk opinion.

And when the opinion of someone, whatever his intelligence level is, is the main influence on something's price, I think that it's a very big warning sign. 

Also, there's so much volatility on Bitcoin. Between may 10th and may 23rd, Bictoin went from 59 000$ to 33 000$. What the fuck is that ? Nothing really happened meanwhile. Do you often see that kind of volatility on great stocks? 

Some people will say that, even if Bitcoin is down a lot these past days, it's price still went from 9000$ one year ago to 33 000$ today. That's right. It's still a great performance.

When you buy Google, you can see that it makes more and more money every year since the beginning or so. So, you understand that you own a company with a worth that's growing. But when you buy Bitcoin, you only hope that people will believe more in Bitcoin next year than this year. 

1 commentaire:

  1. Yes we have seen this voatility wth stocks. Amazon crashed many times. Once 90%. When was a good time to sell?