Last I checked when you purchase stock you purchase part of a company that actually produces something.
Sure. It’s also full of those things. Tons of manipulation and grift
Yes, I wish the SEC actually functioned.
But that’s not the job of the SEC, their job is to provide the facade of regulation. In that sense they fulfill their job rather well.
Stocks are classically fungible though.
I was referring to @jpinard’s quote. Everything he said applies to the stock market.
Stocks are less risky and there is some sort of reason for their valuation usually, but owning a stock doesn’t mean you can’t lose everything tomorrow because of info you had no way of knowing, owner or not.
The companies I own stock in pay me dividends.
Ok, and a bunch don’t. A bunch are overvalued and don’t truly represent the company behind it.
I know it’s not the same, all I was saying is that quote’s arguments could be said about the stock market.
It can’t. He is literally making the opposite point - that the reason cryptofans love the blockchain is because it’s even less regulated than the stock market. “You don’t need to file a S-1 or have a coherent prospectus” with crypto; you do for an IPO on the stock market.
@jpinard’s quote doesn’t mention S-1s.
Everything in the first paragraph could be said about the stock market. The second paragraph replace it with GME.
So if you sell your crypto and make a profit in dollars, it’s exactly because a greater fool bought it at a higher price than you did. So every dollar that comes out of a cryptocurrency is because a later investor put a dollar in. They are inherently zero-sum by design, and when you take into account the casino (i.e. exchanges and miners) taking a rake on the game then the entire structure becomes strictly negative-sum. For every winner there are guaranteed to be multiple losers. It’s a game rigged by insiders by hacking human psychology.
For cryptocurrency to have any real utility, the volatility needs to cool off. If that were to happen, there would be little reason for the public to speculate on cryptocurrency prices, given that there would no longer be the potential for massive returns.
Except the majority of stocks do pay dividends with money that comes from outside the stock market.
And those that do not have to hold out a realistic prospect that they will do at some point. They are judged on the cashflow, or at the very least plausible future cashflow, of the underlying business.
SPACs are a different thing, but they are basically a scammy mechanism to take a company public with less oversight and middlemen walking off with far more money than in a conventional IPO. They’re a tiny portion of the market as a whole, despite the well-deserved critical coverage they’ve recieved.
So at this point the argument is what exactly? All markets are rigged so bad?
Almost, but not quite. There are not “zero sum by design”, you are supposed to pay some attention whether they actually have a reasonable (whatever it means to you) amount of assets to recoup loses for stock owners (and others) in case of collapse. And they do work to raise capital for investment, whether said investment pans out or not, but it’s still made somewhat in the clear.
It’s still rigged, and currently not supporting innovation that much, but it’s fairly stable and safe for the random person with money.
Have you read Wall Street Bets?
Those aren’t real investments, they’re gambling. Diversify on Amazon, Google, Pfizer, Merck, etc and you’re unlikely to not gain a fair bit in the foreseeable future, let alone have losses. And that’s far and away most of the market, following Blackrock and whatever, which is why they rise a stupid amount.
What about this explanation?
I love this comment
https://i.imgur.com/zLNUClB.png
No, if you were a boomer, you wouldn’t have understood any of this shit. FFS I have no idea of what any of that means.
Rami Ismail talking sense about why transferable items between games (via NFT magic) won’t work:
There’s also this one!
