Crypto currency (IF banned from CA)

[DuuuncanHadaPigeon]

Not at all because stocks are tied to the value and profitability of the company and shares pay dividends if the company does well. Yes the value increases because people want the shares if they are making profit and the price increases due to supply and demand (there is a finite supply unlike Crypto).

Common misconception. The price of a stock is nearly 100% based on speculation, TSLA is a good example, even Musk said the price of the stock was too high and didn't make sense. What drove the massive TSLA price run up? Speculation, people buying and hoping to sell to someone new later for a profit. Dividends do not drive the price of a stock up or down.

There are lots of cryptos with finite supplies, BTC being the prime example. In fact a finite supply is probably the norm in crypto.

 

[Lobster Johnson]

Common misconception. The price of a stock is nearly 100% based on speculation, TSLA is a good example, even Musk said the price of the stock was too high and didn't make sense. What drove the massive TSLA price run up? Speculation, people buying and hoping to sell to someone new later for a profit. Dividends do not drive the price of a stock up or down.

There are lots of cryptos with finite supplies, BTC being the prime example. In fact a finite supply is probably the norm in crypto.

How can I verify this finite supply?

 

[LinekersLegs]

 

[DuuuncanHadaPigeon]

How can I verify this finite supply?

Read the code? Or google it?

The basic idea is BTC miners create 6 blocks per hour. The rewards for each block cut in half every 4 years (the halvening)

~210,000 blocks per 4 years

sum the block reward sizes; 50 + 25 +12.5.... = 100

100 * 210,000 = 21,000,000

Other coins with fixed supply;

• BNB (reducing supply due to burns)
• Cardano
• XRP (premined)
• AVAX
• LTC (just a fork of BTC so same idea, they have already reached their cap)

Most coins have fixed supply. I mean, in the case of BTC, if the miners decide they want more they can make that happen.

 

[YoboCopter]

2024 is the next bear market as far as im aware so plenty of time to stock up on cheap chips

 

[JP5]

Common misconception. The price of a stock is nearly 100% based on speculation, TSLA is a good example, even Musk said the price of the stock was too high and didn't make sense. What drove the massive TSLA price run up? Speculation, people buying and hoping to sell to someone new later for a profit. Dividends do not drive the price of a stock up or down.

There are lots of cryptos with finite supplies, BTC being the prime example. In fact a finite supply is probably the norm in crypto.

No it isn’t. It’s derived primarily from the expectations of future cash flows. Either through dividends, buybacks or retained profits reinvested back into a company in order to grow future cash flows.

For things like equities and bonds that generate cash flow, the price is determined by investor view on what those cash flows will likely be and how much they value those cash flows today.

There is an element of forecasting and therefore ‘speculation’ but to say it is 100% speculation is just plain wrong and shows a misunderstanding of valuation and the dynamics between that and prices.

 

[JimmyJeffers]

No it isn’t. It’s derived primarily from the expectations of future cash flows. Either through dividends, buybacks or retained profits reinvested back into a company in order to grow future cash flows.

For things like equities and bonds that generate cash flow, the price is determined by investor view on what those cash flows will likely be and how much they value those cash flows today.

There is an element of forecasting and therefore ‘speculation’ but to say it is 100% speculation is just plain wrong and shows a misunderstanding of valuation and the dynamics between that and prices.

OMG! It’s a WEXING ladies and gents it’s a WEXING. Gather around and look and the poor corpse of @DuuuncanHadaPigeon .Yes it is common for the victim to urinate themselves before their ultimate demise.

@chicoazul can you call the hose down crew to clear this mess up.

 

[YoboCopter]

Alot of technical talk in here i just put money in and hope to take more out

 

[PhilM]

 

[LinekersLegs]

Photo isn’t really selling it lol

 

[peteblue]

Some people win, some people lose, it has no real value and is a great way to mug the populace,,,,,

 

[Death]

Some people win, some people lose, it has no real value and is a great way to mug the populace,,,,,

That's capitalism baby

#voteBORIS

 

[LinekersLegs]

 

[chicoazul]

Dudes where the heck is @nikom court?

Bro say hi, I worried.

 

[DuuuncanHadaPigeon]

No it isn’t. It’s derived primarily from the expectations of future cash flows. Either through dividends, buybacks or retained profits reinvested back into a company in order to grow future cash flows.

For things like equities and bonds that generate cash flow, the price is determined by investor view on what those cash flows will likely be and how much they value those cash flows today.

There is an element of forecasting and therefore ‘speculation’ but to say it is 100% speculation is just plain wrong and shows a misunderstanding of valuation and the dynamics between that and prices.

I said 'nearly 100%' the vast majority of price appreciation comes from the next guy buying higher. You can't do anything with your shares except hope you can find someone to buy it for higher than you paid.

Dividends account for a tiny amount of profit compared to the profits from price appreciation. Yes stock buybacks push the price higher but in order for me to extract that value I need to sell, to who? the next guy who buying higher

When you boil it all down it the only thing that moves the share price up is more people buying than selling. That is it.

Apple could sell 1 trillion iphones and have record profits and cash flows, but if no one buys or sells the stock (aside from buybacks) the price will not move...