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(S)He Who Disagrees With A Book
What makes one not to prefer a book? Picking up a book is an act of curiosity, or out of necessity, or whatever reason, probably to fill the time? We hope to understand what the author put down; but the book isn’t always that great. Some of you just hate books, whatever the reason. Others are more critical to book contents, tending to criticize while they read. Other more are less critical, or delayed critical (like one self), whom tries to understand what the author said first, then later if...
The Diary: A Trip On The Road
The alarm rang. Snuff! It snapped one's dream in half. Grudgingly getting up, one made for the clock. Right, 5 in the morning. Not the time to go back to sleep, at least not today. Meditations, checked. Filled one's bottle with water, checked. Stuffs packed yesterday, checked. Brushed one's teeth, checked. It's time to leave. Streetlights and headlights lit the road clear, though, light pollution was 'light'. That didn't last long. As the morning sun rise, t...
(S)He Who Disagrees With A Book
What makes one not to prefer a book? Picking up a book is an act of curiosity, or out of necessity, or whatever reason, probably to fill the time? We hope to understand what the author put down; but the book isn’t always that great. Some of you just hate books, whatever the reason. Others are more critical to book contents, tending to criticize while they read. Other more are less critical, or delayed critical (like one self), whom tries to understand what the author said first, then later if...
The Diary: A Trip On The Road
The alarm rang. Snuff! It snapped one's dream in half. Grudgingly getting up, one made for the clock. Right, 5 in the morning. Not the time to go back to sleep, at least not today. Meditations, checked. Filled one's bottle with water, checked. Stuffs packed yesterday, checked. Brushed one's teeth, checked. It's time to leave. Streetlights and headlights lit the road clear, though, light pollution was 'light'. That didn't last long. As the morning sun rise, t...
One day, a friend ask, if one could justify the price of stocks by the value of its company, how do one judge the value of Bitcoin? There are no price/earnings ratio.
Like fiat, Bitcoin derived its value from public trust, and speculators and investors willingness to bet on its future. Except, it's not controlled by a government. Yet, as a medium to exchange for goods, we can't treat it more like a stock than like a fiat. Government control fiat to be stable, because human likes stability; but without a government, Bitcoin can't be stable, so only speculators and investors trade in it. But let's not forget that Bitcoin is a coin, a currency, not a stock equivalent.
There is one type of coin that acts like stocks though. These are the coins minted by DAO. DAO, where the "O" stands for "organization", acts like a company, hence it has an inherent value. Hence, we can relate its coins to the DAO's value. As stock doesn't reflect a company's value, DAO's minted coins also don't reflect a company's value, hence it tends to have overvaluation and undervaluation. At least, that's how one sees it. One doubt, with a coin that replace its stock, a DAO still have stock; but one don't know. DAO varies from DAO to DAO, and perhaps some board of directors might decide to have a DAO creating stocks, even though one don't see the point.
In conclusion, trading Bitcoin isn't the same as trading stocks. One trade stocks because one see the undervaluation of a stock price compared to the value of the company. One trade Bitcoin because one believe it'll rise in price in the future, when it's being undervalued. Probably a whole new field of investment are to apply to Bitcoin; yet, some of the current investment principle, especially those that relate to self-control (patience and wait), applies in all situation, regardless of how the trading is done.
This article is first written in read.cash.
One day, a friend ask, if one could justify the price of stocks by the value of its company, how do one judge the value of Bitcoin? There are no price/earnings ratio.
Like fiat, Bitcoin derived its value from public trust, and speculators and investors willingness to bet on its future. Except, it's not controlled by a government. Yet, as a medium to exchange for goods, we can't treat it more like a stock than like a fiat. Government control fiat to be stable, because human likes stability; but without a government, Bitcoin can't be stable, so only speculators and investors trade in it. But let's not forget that Bitcoin is a coin, a currency, not a stock equivalent.
There is one type of coin that acts like stocks though. These are the coins minted by DAO. DAO, where the "O" stands for "organization", acts like a company, hence it has an inherent value. Hence, we can relate its coins to the DAO's value. As stock doesn't reflect a company's value, DAO's minted coins also don't reflect a company's value, hence it tends to have overvaluation and undervaluation. At least, that's how one sees it. One doubt, with a coin that replace its stock, a DAO still have stock; but one don't know. DAO varies from DAO to DAO, and perhaps some board of directors might decide to have a DAO creating stocks, even though one don't see the point.
In conclusion, trading Bitcoin isn't the same as trading stocks. One trade stocks because one see the undervaluation of a stock price compared to the value of the company. One trade Bitcoin because one believe it'll rise in price in the future, when it's being undervalued. Probably a whole new field of investment are to apply to Bitcoin; yet, some of the current investment principle, especially those that relate to self-control (patience and wait), applies in all situation, regardless of how the trading is done.
This article is first written in read.cash.
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