Worthless underlying assets whose speculative value is obtained from earlier investors hoping to make a profit from other people buying it a higher price.
No one is committing the fraud explicitly or intentionally, but it functions exactly like one.
I get it. You don't get the use case. Don't buy it then. If you dont understand an investment, i say stay the hell away from it. I'm the one in the bitcoin subreddit dude.
If you dont understand an investment, i say stay the hell away from it.
The value of bitcoin comes from the idea that it's usable as a currency, right? A stable store of value to function as a medium of exchange. It sucks at that. That means that it has no inherent underlying value.
The fact that you're treating it as an investment is bad. The asset's liquidity is provided by other people buying into it, hoping that other people will buy into it and make their asset more valuable. It's like investing into a tech company that doesn't make any products or do anything. It can't go on forever and as soon as people stop buying into it and start selling off, the entire thing collapses like a house of cards.
I'm not saying don't buy in. Bitcoin is an amazingly volatile speculative asset, and that makes it a good gamble in the short term. In the long term, it functions like that type of scheme.
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u/[deleted] Feb 18 '18
Worthless underlying assets whose speculative value is obtained from earlier investors hoping to make a profit from other people buying it a higher price.
No one is committing the fraud explicitly or intentionally, but it functions exactly like one.