The bitcoin is a financial asset with no ballast that people buy because they believe it will appreciate.
To liquidate your position and to make a profit you need constant inflow of new investors to keep the market going as BTC has no true value. There's no backing of any hard assets.
The revenue stream is based on new investments rather than the underlying product itself. That's a very common pyramid scheme/multi level marketing scenario.
This is very different from company stocks, as the stock unit itself is a guarantor of dividends and a small part ownership of the assets of a company. Its price is representative of the performance of the company, it is not the product itself. That company produces something (in theory), although to cash out you still need to find someone to buy it at a said price.
To liquidate your position and to make a profit you need constant inflow of new investors to keep the market going as BTC has no true value. There's no backing of any hard assets.
The revenue stream is based on new investments rather than the underlying product itself. That's a very common pyramid scheme/multi level marketing scenario.
This is very different from company stocks, as the stock unit itself is a guarantor of dividends and a small part ownership of the assets of a company. Its price is representative of the performance of the company, it is not the product itself. That company produces something (in theory), although to cash out you still need to find someone to buy it at a said price.