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by eru
2422 days ago
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> But I rather buy Bitcoin than WeWork shares (assuming they list). Depends on the price. Thanks to limited liability, WeWork share can never be worth less than zero. And just liquidating their existing office supplis is probably worth at least a few thousand dollars. But, of course, you'd have to pay off creditors first. If WeWork lists and doesn't go under, and assuming even a weak version of the efficient market hypothesis, the price their shares trade on will be about 'right'. > Until a government defaults. This doesn't happy every week, but ruling out that it doesn't is not the best investment strategy. Agreed. Though in the developed world, inflation is usually the bigger worry. (Unless you buy inflation indexed bonds.) |
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The reason Bitcoin is valuable is because the work required to create one is significantly harder than Fiat currencies and it is one of the only truly scarce assets in human history (hard cap).
How much equipment do you need to counterfeit any fiat currency? Can you purchase the equipment for less than $10k?
Yes, easy.
How much equipment do you need to counterfeit Bitcoin? Can you purchase the equipment for less than $1 billion?
No, not easy.
You may think this is a trivial distinction but it has tremendous value knowing you have hard uncounterfeitable money with a hard cap.
The US treasury spends hundreds of millions of dollars a year fighting fake bills, that's only 1 of the dozen or so problems bitcoin solves. The second is that all the verification and security is done by the most powerful supercomputer in human history.
These things gives it its value.
Garbage company stocks, you can throw those in the trash if the central banks aren't busy helping pump them.
Hard money wins, soft money gets snuffed in the night.