@BitcoinBaby
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๐๐ข๐ญ๐๐จ๐ข๐ง ๐๐ง๐ ๐๐ซ๐ฒ๐ฉ๐ญ๐จ ๐ก๐๐ฏ๐ ๐ '๐๐ฅ๐จ๐ง ๐๐ฎ๐ฌ๐ค ๐ฉ๐ซ๐จ๐๐ฅ๐๐ฆ' I love this video in which CNN's Jon Sarlin explores the contradictions of crypto's decentralized networks alongside the very central influence of one man. Because When Elon Musk tweets, the crypto world listens. And as a true baby, I keep asking why? Itยดs not like he has an enormous amount of insight or even tweets serious stuff..... It does not even have to be a tweet a pair of Doge sunglasses does the trick already.... Why Why Why https://www.youtube.com/watch?v=lxTtA4bPEKg #Cryptocurrency
9 comments
I often think that logic would suggest that if one man's opinion alone can move Bitcoin one direction or another, what is really behind the value of Bitcoin itself? Because if Bitcoin had real value wouldn't it move on its own regardless of one man's opinion?
It's what worries me indeed and I also see the influence is temporary in most cases but still....it says a lot about maturity in my book.
What worries me is that if people are investing on movements instead of fundamentals... Everyone is doomed. I don't care what the asset class is. If you can't determine the value based on SOMETHING, then there is NO value, and you are simply pulling a lever on a slot machine hoping for a big win off the random number generator. And that is NOT investing. That is pure gambling. Because real investing means you can actually determine a value based on a set of criteria that defines the value. If one cannot fully explain why something is worth something... It is worth nothing.
Well yes but influencers are everywhere and they in many cases get paid to increase the value of a product by promoting it.
This is true. But it sort of makes my point as well. For example, people (including influencers) share opinions and analysis all the time in the stock market, and while some of this 'influence' CAN drive a stock up or down, in the end the stocks level out and rise and fall independent of the influence. In other words, regardless of short term artificial movements, the fundamentals ultimately drive the stock price. Not technicals, and not outside opinion or influence. MAYBE ultimately crypto acts in the same way. I really don't know. I have not followed it long enough to come to any conclusion. And perhaps I base my observations too closely to the stock market, when these two asset classes are entirely different.
They are different but I see your point and once the crypto market matures the influence will be less ....is my expectation of course
You may be right. I think it would HAVE to be right since nothing will ever have any real value that you cannot determine what GIVES it the value in the first place. If I have $1 USD in my pocket I can determine its worth by what's behind it. GDP, import/export activity, the cost of money movement via the Fed and a number of other things that tell me exactly what $1 is actually worth and why it is worth that much.
Does Elon have a "whale" account of his own which he can use to help magnify the impact of his tweets?
IDK I doubt it, somehow I trust the guy Aspergers have a hard time being dishonest