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These NFT things

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Efcjake said:
You can't compare crypto and corporate stock.

The only thing driving crypto price increases is the hope of selling it to some other idiot for more money than you paid.

You can buy a stock and the company can increase its value by generating greater revenue and profit. Crypto products don't generate revenue. They're stores of wealth like a commodity that earns value simply by existing and demand increasing for limited supply but when that demand curve stops growing it falls apart.
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You are wrong.

The value of the apple stock and the appreciation of the apple stock is based on the next guy buying. Or as you put it 'the hope of selling it to some other idiot for more money than you paid'

You buy an iphone, show me where that money goes to the shareholders. The only two exceptions to this are stock buy backs and dividends. In stock buy backs in order to extract that value, you have to sell your stock to the next guy.

Dividends is the only way money goes from the sale of an iphone to the shareholders, and this makes up a tiny portion of the price of the stock.

The vast vast majority of profitability in stocks is the next guy buying higher. It is the reason you have unprofitable companies that have insane price movements. Amazon lost money forever, they have only just started showing profits but Bezos is one of the richest guys in the world

Everything that is priced against the dollar goes up forever because they just keep printing more. When they print this money where does it go, it just goes into the stock market and then the stock market goes to new all time highs because people look for places to park their capital to beat inflation

If you are a shareholder in apple or another company, your profit comes from the next guy buying, not from dividends or buybacks or the 'value' of the company.

It ain't what you don't know that gets you into trouble, it's what you know for sure that just ain't so
 
Efcjake said:
It is silicone and precious metals. It operates on 1s and 0s but it isn't solely 1s and 0s like your money.
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so if bitcoin is just solely 1s and 0s, where are they? do you think they are just floating around in thin air? or do they exist inside computers (silicone and precious metals)
 

DuuuncanHadaPigeon said:
You are wrong.

The value of the apple stock and the appreciation of the apple stock is based on the next guy buying. Or as you put it 'the hope of selling it to some other idiot for more money than you paid'
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No, it isn't. Part of the price of shares are affected by demand for that share. That demand comes from belief that the share will be worth more tomorrow than you pay for it today just like cryptocurrency. The difference is that company shares are ownership percentages of a company and that company can generate its own value increases through company performance generating profit that is reinvested in growing the assets of the business.

Cryptocurrency doesn't do that. It acts as a commodity store of wealth but it doesn't generate value itself.

You buy an iphone, show me where that money goes to the shareholders. The only two exceptions to this are stock buy backs and dividends. In stock buy backs in order to extract that value, you have to sell your stock to the next guy.
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The profit from that iPhone is used to either pay dividends or to expand the company and purchase more assets that enable the company to generate more value for the shareholders and the portion of the company that share represents then represents a large value of assets owned by the company.

Crypto doesn't do this.

If you sell enough iphones to open a new production facility and increase profit margins the value of that production facility asset increases the overall value of the company and the overall value of that share representing a portion of that company.

Dividends is the only way money goes from the sale of an iphone to the shareholders, and this makes up a tiny portion of the price of the stock.

The vast vast majority of profitability in stocks is the next guy buying higher. It is the reason you have unprofitable companies that have insane price movements. Amazon lost money forever, they have only just started showing profits but Bezos is one of the richest guys in the world

Everything that is priced against the dollar goes up forever because they just keep printing more. When they print this money where does it go, it just goes into the stock market and then the stock market goes to new all time highs because people look for places to park their capital to beat inflation

If you are a shareholder in apple or another company, your profit comes from the next guy buying, not from dividends or buybacks or the 'value' of the company.

It ain't what you don't know that gets you into trouble, it's what you know for sure that just ain't so
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This is entirely incorrect.

A share increase in value when the company balance sheet increases in value and therefore you get a proportional increase in the value of your share. That is earned value that has nothing to do with the factor of demand for the share.
 

Efcjake said:
No, it isn't. Part of the price of shares are affected by demand for that share. That demand comes from belief that the share will be worth more tomorrow than you pay for it today just like cryptocurrency. The difference is that company shares are ownership percentages of a company and that company can generate its own value increases through company performance generating profit that is reinvested in growing the assets of the business.

Cryptocurrency doesn't do that. It acts as a commodity store of wealth but it doesn't generate value itself.


The profit from that iPhone is used to either pay dividends or to expand the company and purchase more assets that enable the company to generate more value for the shareholders and the portion of the company that share represents then represents a large value of assets owned by the company.

Crypto doesn't do this.

If you sell enough iphones to open a new production facility and increase profit margins the value of that production facility asset increases the overall value of the company and the overall value of that share representing a portion of that company.



This is entirely incorrect.

A share increase in value when the company balance sheet increases in value and therefore you get a proportional increase in the value of your share. That is earned value that has nothing to do with the factor of demand for the share.
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Thats all well and good but as @DuuuncanHadaPigeon stated, someone still has to buy the shares off you for more than you paid.

Though its almost 1am here so :)
 
Efcjake said:
Right but the value of that share can increase separate to influence from demand for the share.

This is not true for Crypto or NFTs.

That's the point I was making.
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The value of a share is only what someone is willing to pay for it, this is why we have over/under valued shares.

If apple sold 1 trillion iphones, but no one bought or sold a single share, the price would remain the same regardless of how the company performed.
 
DuuuncanHadaPigeon said:
The value of a share is only what someone is willing to pay for it, this is why we have over/under valued shares.

If apple sold 1 trillion iphones, but no one bought or sold a single share, the price would remain the same regardless of how the company performed.
Click to expand...

The price of a share is not the same as its represented portion of the company's value.

Hence why you can have under/overpriced shares. What makes the share under or over priced? When the portion of the company that share represents does not reflect the price of the share.

How do you know when crypto or an NFT is under/overpriced?

You don't because unlike shares which can be tied back to a portion of a company's asset portfolio they don't represent anything other than demand.
 

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