| > Bitcoin reflects financial markets No it doesn't. Bitcoin has no intrinsic tie to the financial markets. The financial markets are all based on goods, services, and economic value. They build meta layers on top of it and sometimes those layers are bad, but nonetheless they are based on value. Bitcoin is based on speculation. It offers no inherent value. No one needs or wants Bitcoin. People do want or need food, shelter, health, entertainment, education, human connection, etc, that the rest of the financial markets are based on. I think a lot of crypto advocates don't understand that the stock market isn't made up. Yes there is volatility, yes it isn't perfect. But it isn't a pure casino. Bitcoin has sometimes* correlated with the broader financial markets, but not because it was an indicator of the markets but because it was accidentally caught up in them as an inconsequential side thought. It got treated as an investment commodity by some big asset managers and thus followed the same trading patterns. When the asset managers thought outlook was poor, they sold a bit of everything, and everything would go down. |
Not an obvious one for sure.
> The financial markets are all based on ...
> Bitcoin is based on ...
I don't understand why people consider this to be any kind of argument. The very same one also applies to AI discussions and comparing hardware used to run it to brains.
What does it matter what the thing "is based" on? Gas turbines, photovoltaics, and nuclear reactors are based on completely different phenomenon, and yet they all generate electricity.
I think you missed the whole point of my previous comment. Maybe the analogy was unclear? What do you think I was trying to say?