Cryptocurrency

[BrilloPad]

A bitcoin is a token of exchange and its value is entirely dependent on the willingness of others to exchange it. Quite unlike shares.

There are certainly differences. The main one being the dividend.

There is a story from the stock exchange days about a trader who buys a tin of beans for 50p. His neighbour thinks it sounds nice so buys it for 60p. Someone else buys it off them for 70p. The price goes up until it reaches £50. The winner opens the tin of beans and they are off. Who does he go back to as most of the intermedaries have cleared off?

That can happen in shares as much as bitcoin.

 

[TheGreenBastard]

If you own 10% of a manufacturing company, you own manufacturing capability.

Totally irrelevant in practice and doesn't alter the fact shares behave the same.if you don't realise gains.

 

[TheGreenBastard]

A bitcoin is a token of exchange and its value is entirely dependent on the willingness of others to exchange it. Quite unlike shares.

That's exactly how shares work on most markets - finite number of shares issued matching buy/sell orders.

 

[northernladyuk]

That's exactly how shares work on most markets - finite number of shares issued matching buy/sell orders.

How shares work on markets is not the same as what they are and whence they derive their intrinsic value.

 

[northernladyuk]

Totally irrelevant in practice and doesn't alter the fact shares behave the same.if you don't realise gains.

Bitcoin does not provide dividend on profit.

 

[TheGreenBastard]

How shares work on markets is not the same as what they are and whence they derive their intrinsic value.

This just highlights your stupidity. Most people's concern is their performance on markets - not some idealistic notion they own a insignificant ownership in GOOG (of which the share you "own" could be of non voting class).

Bitcoin does not provide dividend on profit.

So all shares provide dividends?

 

[northernladyuk]

This just highlights your stupidity. Most people's concern is their performance on markets - not some idealistic notion they own a insignificant ownership in GOOG (of which the share you "own" could be of non voting class).



So all shares provide dividends?

Again you are talking about people's concern, not what shares are.

 

[TheGreenBastard]

Again you are talking about people's concern, not what shares are.

Like every other thread you participate in, you're fixating on semantics /pedantry after being exposed as knowing nothing on the topic at hand.

 

[northernladyuk]

Like every other thread you participate in, you're fixating on semantics /pedantry after being exposed as knowing nothing on the topic at hand.

Not at all. I don't see why you're being so cross. I'll try again.

Bitcoin is a token of exchange that only has any value because of the willingness of others to accept it as a token of exchange.

Shares have an intrinsic value in that they represent a share in ownership of a commercial entity with productive capability or potential.

Do you see now how there is a fundamental difference, in their nature, which is not a matter of pedantry?

 

[TheGreenBastard]

You haven't made anything until you've cashed out. Until then, you're just another greater fool. If you do cash out before the bubble bursts, well done.

Just like stocks and shares.

A bitcoin is a token of exchange and its value is entirely dependent on the willingness of others to exchange it. Quite unlike shares.

No, actually, as a financial instrument it's EXACTLY like shares.

Bitcoin does not provide dividend on profit.

That isn't a requirement of a share - research share classes, voting rights. How many dividends has GOOG issued?

Not at all. I don't see why you're being so cross. I'll try again.

Bitcoin is a token of exchange that only has any value because of the willingness of others to accept it as a token of exchange.

Shares have an intrinsic value in that they represent a share in ownership of a commercial entity with productive capability or potential.

Do you see now how there is a fundamental difference, in their nature, which is not a matter of pedantry?

I'm not cross, entertained with your fixation to move the target to be "right" - even when we've ascertained that additionally to cryptocurrencies, you don't know much about stocks and shares.

You're fixating on "ownership" when in practice (in the real world) shares are a financial instrument that "ownership" is never exercised in the capacity you're arguing.

The shares in people's pensions / ISAs behave almost exactly like an appreciate store of value - until, like Bitcoin, the gains are crystallised.