3203

So it’s fine when GME goes up for no reason other than people jumping on a bandwagon, but not when it’s crypto? I don’t see the difference personally. “Can I make money off those peoples actions?” is what I think about.

3204

They are also buying retail traders data from Robinhood.

3205

Your simpleton mathematics can’t handle the divide by zero, TO THE MOON!

3206

“Crypto is like this notoriously fraud riddled / heavily manipulated fringe investment market” is something I find it easy to agree with, although I’m not sure that’s the point you’re trying to make.

3207

The penny stocks I was involved in were volatile and risky. They would move on news that was wasn’t public knowledge (I guess, I often found it very confusing). I found the randomness of them to be kind of similar to something like crypto because of it. I wasn’t really making a point other than replying to someones comment though.

3208

No, you said it 16 hours ago:

Stocks go up and down based on people’s predictions of how that company will do in the future. And just to prove how the stock market works: Netflix’s stock didn’t drop by 50% because it said “it would change its name to Qwikster”; it dropped by half because they announced that they were splitting Netflix into two separate companies–Netflix, which would focus solely on the streaming service, and Qwikster, which would be a separate company for their DVD-delivery service. Customers did not like the price hike that went with it, and didn’t like the idea of having two separate accounts for the same service. Netflix lost a million customers, and then they finally canceled the Qwikster concept.

THAT’S why the stock lost half of its value: because investors thought that their decision would have a negative impact on long-term profits for the company.

Even the jump in GME and AMC was based on specific, real-world data: Investors were heavily shorting those stocks based on earnings, so a bunch of Reddit users decided to stick it to the investors. Also on a more basic level, Reddit users picked Gamestop because they like video games, and they picked AMC because they like movies. And again, cryptocurrency has no such underlying value.

And other people are wondering how they can make money off of YOUR actions. But there’s no underlying value there, so it’s just one big Ponzi scheme.

3209

And yet Netflix stock didn’t rebound when they said they wouldn’t do that. It took years for that. Also they didnt pick GME because they like games. They manipulated it to make money. They are still doing it. That was just the cover they used.

3210

I can’t help but think of this:

3211

When stocks go down? This:

3212

I hate to defend crypto, but Bitcoin is money. (allegedly). What is the P/E ratio of CAD, or JPY, or GBP?
NFTs are collectables. What’s the P/E ratio of a painting, or a baseball card? It’s ultimately what someone is willing to pay for it.

The MLM analogy is better. The whole scheme depends on convincing another person the garbage you bought is worth more than you paid for it, and convince them to buy it from you and try to sell it to someone else for even more. Crypto is LulaRoe, or Herbalife, or Mary Kay. But boys do it instead of girls, and they don’t clutter up their house with rubbish.

3213

Isn’t this a conversation with one or more people who claim that investing in Bitcoin or other crypto is no different than investing in stocks? I think a question that gets at how it isn’t like stocks is, well, bang on the money.

3214

Bitcoin is essentially like speculative commodity trading… it’s not really money, because it’s not functionally capable of being a real currency.

It’s effectively just tulip bulbs.

A lot of people got real rich in tulip bulbs back in the 1600’s.

3215

Sure… but the argument seems to be that stocks move based on things other than fundamentals, which is certainly true. And there’s a lot of fuckery in the stock market, something I think we all agree with. In those ways it’s very similar to crypto.

In a free market system something is worth whatever someone is willing to pay for it. Stocks included. Crypto is the ultimate abstraction of that. It’s literally nothing but a promise.

When my ex did LulaRoe at least my daughter didn’t have to buy clothes for 5 years. So there was SOME value there, albeit an awful value. There’s no underlying value in a Bitcoin. It’s nothing. The only value is if you find another sucker.

3216

Yeah, market sentiment doesn’t immediately shift when a company reverses a bad decision. They lost over a million customers, and they hiked prices and didn’t reverse those. Those were all decisions that had a long-term impact on the stock price.

And yes, of course the people on Reddit picked Gamestop because they like games! They didn’t want their favorite local game store to go out of business. There are always multiple factors, and the nature of the business is definitely one of them.

3217

CAD, JPY, and GBP (as well as all other national currencies) have the monetary authority of sovereign nations backing them. The equivalent of it’s P/E is how attractive the country is for investment.

Bitcoin is not money. It has some of the attributes of money (scarcity, resistance to counterfeitiing), but it’s nothing but generated nulls and zeros that some random techbros managed to convince (or con) people into thinking have value.

3218

lol Gamestop was never anyone’s favorite game store. Screw those tools and their hard sell of pre-orders.

3219

No, Roaring Kitty started it, he did a big thing about why it was a good stock (he testified to Congress over it) and they all just kind of bought in over it and then it turned into a story about handing it to the big guy (hedge funds) and if they all just stick together it will go to the moon. /WSB whole thing is they don’t do DD (due diligence) and don’t have paper hands (sell) when everyone is telling you that you should get out. Sound familiar?

PLTR is one of the other big stocks over there, it’s not because it’s their favorite software company. Like all memes, it’s difficult to explain why/how it really took off, but it wasn’t out of some great love for the company. Someone hyped it and enough people bought into it that it would go up.

3220

It’s so odd that you keep talking about how you don’t invest in crypto, yet you know all the terms like “paper hands.”

3221

I have said repeatedly here that I would like to invest in crypto. I don’t trust my ability, or the companies involved, to store it safely, which is why I don’t. I also find /WSB hilarious and read it daily.

I just invest in index funds now, although I really would like to start playing with individual stocks again. I really used to enjoy it, but I am trying to be financially responsible now.

3222

Just buy a lottery ticket, it’s the same thing.