Read on Twitter
This is an interesting point, but also underscores an issue I have with traditional equities that gets glossed over. Specifically, since the dotcom era, fewer entities have thrown off dividends or capital, and investing is primarily a growth narrative. https://twitter.com/ryanwatkins_/status/1354075971155079170
But, when you think about it, this is just glorified greater fool theory, and in some twisted ways, crypto speculation is almost MORE rational than stock speculation. Take $GME. Even if it recovers completely, no one believes they’re throwing cash back to SHs any time soon.
You also cant DO anything with $GME other than maybe get a collateralized loan, although even that’s not happening because no lender will lend on the asset. There’s almost 0 chance it entitles you to some other future benefit. So really, people are just banking on selling higher.
This isn’t atypical in a growth narrative market either, it’s the norm. But if this continues ad Infinitum, at some point we’re going to have to admit that fundamental stock and corp gov theories need to be revisited.
I’m still undecided on whether crypto will (or should) follow a similar growth trajectory narrative or if the dividend/revenue model will ultimately prevail, but I’ll concede that folks like @RyanWatkins_ are correct that the ‘17 may be unduly biasing people like me.
But I will say that if we are going to collectively pretend like stocks somehow make sense based on growth narratives, I don’t see how folks justify treating crypto differently. Hell, at least with some coins you can do more than just buy/sell/hold relative to equities.
