LogFAQs > #964981090

scar the 1 posted...

To be fair, that value is just made up. The actual value a house provides (shelter) is not defined by the stock market, it's defined by its real, physical characteristics. Yes, crypto is just made up nonsense. So is money and stocks, we just collectively decided that they are worth something.

Except a countries currency has value based on the backing of said government and the economic output or opportunity for output within a country. Yes the value is based on confidence, but that confidence is in a tangible output.

Same with (most) stocks. The value is based on the confidence in the company based on their ability to earn money and provide a return to shareholders. It can also be based on potential output for a company (lots of tech stocks, tesla). But in most cases there is a tangible item, idea, or opportunity.

I havent quite figured out what cryptos output is, other than speculation it may be adopted in some places as a legitimate currency. Personally i think countries will create their own and restrict use of these kinds of decentralized currencies.