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by Thorentis
2421 days ago
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Well, you could apply this to almost any of the highly abstracted financial instruments currently traded. Derivatives, options, etc. People claim they're "investing in real companies" (which at a very low level they are), but most of the time what is actually happening, is you are betting on whether other people will invest in the company, or what investor sentiment will be x months down the track. You aren't directly investing in the success of the company, you're investing in the investor confidence in the company. Buying stocks directly is of course, at least a bit different. I see Bitcoin as much the same. Sure, it could be used as a real currency, in the same way that I could use options or bonds as real currency. I could ask you if you'd be willing to sell your car to me for x number of options I currently hold. But I haven't created a new currency, and the value behind that "currency" is just the investor opinion of it at any given time. |
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