01-19-2018, 02:23 PM
(01-19-2018, 01:28 PM)fredtoast Wrote: Actually if a corporation with assets liquidates and you hols common stock you do have a claim against the assets. The fact that stock prices are based more on earning potential than asset value does not mean the stock has no value.
And even a "loose association" is a basis for value. There is something you can look at to determine if it is a good investment. If someone was thinking of investing in Bitcoin what factors would they look at to determine what the value of Bitcoin will be next year? There has to be something that sets the value other than just "people agreeing". What effects the opinion of these people that agree on the price of Bitcoin? If I buy one does my opinion matter?
You only have a claim after preferred share holders and creditors. If the company is insolvent they are simply canceled. If they come out of it they will be over diluted bought back and reissued under a new name.
As for the rest, you are ignoring basic economic theory if you don't believe value is derived from people agreeing on a set value. How each get there is up to them but in the end value is whatever the parties have set it to be. A market that forms around anything is built on this principal.
As to Bitcoin (Crypto more broadly) feel free to read up on it. It's kind of it's own case study borrowing principals from FOREX and Stocks. Anything more at this point in regards to value will just be going round and round. There is some interchangeable use of price and value being used that may be causing some of the confusion.
