LogFAQs > #978665990

Sephiroth_C_Ryu posted...

This is basically no different then the stock market, except that with stocks there is technically some company or something you supposedly have a piece of. Not that you can go use that to claim ownership over, say, the factory machinery they have.

The value of said stock in said company doesn't reflect the actual value of what they have. It can and may well vary wildly. If something happens that makes the company need to liquidate itself, odds are you will lose money as its "value" skydives back to around whatever it can sell its stuff off for.

BTW, this is a slam against the stock market as well, not a defense of crypto. Look up the South Sea Bubble sometime.

I get what you're saying, but those companies at least exist. (well most of them, lmao)
It's more about the creation of crypto. Brand new currency out of nothing.
That's what I was trying to point out with my post.
Yes, technically when you mine crypto it exists in digital world, but why is it allowed to have value? It's just digital money.

If we decided to create a physical currency like I tried to describe, we certainly wouldn't be allowed to do so.