[brwsr]

> The bubble is too big for Google

There is the "bubble" word again. So how about our economy, isn't that a bubble too?

What is a bubble? I still see too many places in the world where the sales price for a house is easily 10x the price it actually cost to build it. Banks? Quantitative easing? Startup's? Or at what point will Google look like a bubble itself?

Governments and Banks have learned that the crypto-currency revolution can replace a significant part of our current economy. Whether that's good or bad news, calling it a bubble is foolish and cheap IMHO.

[smt88]

Sure, any bubble can pop. But unlike some other assets, like houses, many popular cryptocurrencies currently have little-to-no intrinsic value.

[shitgoose]

does an AMZ share have an intrinsic value?

[admax88q]

Yes because at the end of the day an share of AMZ means you own a small percentage of that company. That includes a small percentage of all their physical assets, servers, real estate, cash on hand etc.

So yeah there is some intrinsic value.

[shitgoose]

can you go to amazon headquarters and exchange an AMZ share for an office chair? as a physical asset? i have a feeling that security will escort you from the building before you finish the transaction. the only intrinsic value will be the bruises on your wrists.

edit: the value of the share (in the old good days) is the discounted cash flow. you invest in a business, then business pays you the share of the profits (hence - share) in the form of dividends. AMZ share does NOT pay any dividends, nor does grant you any voting rights. nothing. zero. this is your intrinsic value.

[shkkmo]

> can you go to amazon headquarters and exchange an AMZ share for an office chair?

If the total value of share prices drops below the value of the assets, you can buy all the shares, take the company private and sell off all the assets to make money.

Assets (vs liabilities) thus can put a floor on the value of a stock price.

[shitgoose]

i have AMZ shares. and i am still waiting when amazon business goes down the drain so i can take amazon private and sell off its assets and make profit. one helluva business plan and intrinsic value.

[smt88]

Just because something is illiquid or can't be returned doesn't mean it has no value.

[shitgoose]

AMZ is very liquid:)

it is amazing that no one seems to be able to answer simple question - what financial benefit do i get from ownership of an AMZ share? other that selling it to a bigger fool.

[CryptoPunk]

Exactly. Cryptocurrency valuations at the moment are 99% speculation about future utility. Actually it may be 99.9%.

[mulmen]

Pet peeve: made up numbers. Why not just use an adverb?

Yes, I spend a lot of time annoyed.

[CryptoPunk]

Yes I should have said "on the order of 99%". I think generally figures like "99%", when used in this context, imply that this is an approximate value, but I agree that it's better to explicitly state that.

[the_gastropod]

....yes https://www.investopedia.com/terms/i/intrinsicvalue.asp

[shitgoose]

yep. the only intrinsic value i get in exchange for 1,300$ AMZ share is the link explaining the value of an intrinsic value. what exactly can you claim from amazon in exchange for a share? except for a kick in a butt from amazon security?