Intrinsic value investments
This post was first published in Publish0x by me, The Crazy Dude
This morning I read a comment on my previous post that challenged me to explain myself better, I'll try to do so down. So thanks Patch for making me improve! If you want to track this topic you can also check Patch's post here
First of all, I would like to clarify that my anger with Bill Gates is not caused because he prefers "traditional stocks, which have an intrinsic value and produce some product". What offends me is his hypocrisy.
This man amassed his fortune, among other things, because he signed a contract with IBM to provide them with operating software for their new personal computers. At the time of signing the contract, he did not have the software developed and it was a very high-risk bet, a bluff that in the end turned out to be a winner.
Now I ask you a question. What was the intrinsic value of an operating system in 1980?
For me it was zero, for them, who knew the potential of what they were doing, surely it had a "real" value. I use quotes because for me the intrinsic value of things does not exist because the value of the same thing is influenced by circumstances.
In Spanish fields, when there is an excessively generous production of some crop (oranges, sunflowers, barley, etc.) there is a situation in which the product depreciates so much that you have to work harder to harvest more, but the campaign ends and you earn the same The measure that is taken by the farmers is to collect half, thus achieving lower costs of salaries, fuel, etc. and also reducing the supply to increase the price. So the real value of the oranges that get on the truck is different from the oranges that stay on the ground rotting in the sun? The intrinsic value of things is given by the need that people have and the usefulness that these things have. That's why the oranges on the ground are worth nothing because no one is going to use them even if they need them.
Back to the topic of Bill. Does anyone on this planet believe that Bill hasn't researched a new technology that everybody is talking about?
I believe he did, and if he has investigated, he will have discovered that there are platforms like Ethereum, on which a lot of protocols are being implemented, and that despite its failures, it is probably much better dimensioned than MS-Dos.
This is why I was offended, by his way of pretending to make fools of others. I don't care if he puts his money into farms, oil, or state bonds... is indifferent to me. That he reduces NFT technology to overvalued designs that are not going to help the world is hypocritical because he knows that it is not that simple.
I sincerely believe that they are in a panic because decentralization is their enemy. The intrinsic value of Bitcoin for Europeans and North Americans is low because our exchange need is satisfied with fiat. Moroccan people who are in Spain can send to Morocco fiat to help their families but they can not receive money from Morocco if they need it. What value does Bitcoin have for those cases? as much as the fiat I would say.
In short, what gives value to things is what someone is willing to exchange for them. A cold Coca-Cola in the desert is surely worth more than in a city. A footballer never cost €200 million until PSG paid them for Neymar and yes, that was his intrinsic value at that time. I know that the theory says that this is its market value and that its intrinsic value is according to its sports performance. But a few years ago Florentino included a new parameter to measure the value of soccer players, marketing. A footballer who generates more income than the cost of signing him is then below his intrinsic value?
I don't think so, if no one could/wanted to pay more, its intrinsic value is that. Its market value is much higher because you could pay more for him and get a mercantile benefit.
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Do not forget to follow all my advice if you want to lose your wife because you have put the rent money in "coins that are worth cents but can be worth thousands of dollars"
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