Happy New Year Doge, BotanicusRex, and Rasta, it is freezing in Central Florida. Minnesota must be awfully cold right now. Good posts from all.
Getting shot at is like having kinky sex for the 1st time. The 1st time is scary, after that it is normal (if you liked it).
Doge is right when he says (1) Bitcoin is not comparable to a stock, and (2) the price isn't overvalued, however the price and "value" are undetermined.
if 3 people agree to trade it (a market). Consider this. If I offered to give you a silver war nickle or a 2017 nickle, what would you choose? As long as there is a market, the prices are justified, although both are worth 5 cents at the bank .
Intrinsic vale of a FRN - really? Unless you are going to buy land, payoff a mortgage, or buy an existing and successful commercial business, why you ever consider selling Bitcoin for USD? Do you just want a big balance in your checking account, or are you wanting to buy a Lambo? Neither seems like good choices.
Bitcoin is complex. Nakamoto wrote in the code "How do I explain this to people?". Doge said "once you've actually been shot at with real bullets, life has a way of narrowing your scope. My crypto could all go to zero tomorrow and I'll be just fine."
Doge mentioned active duty military and veterans being into crypts. I'm a vet, and that's the way I feel about it. It can go to the moon or it can drop to zero. I sleep very well at night. That might be a foolish attitude, but I don't care. The price doesn't scare me, it is the technology that I am more interested in. I'll be fine, and I laugh at the price. Bitcoin is an experiment. It did take me some time to get used to the price swings. lol
Those FRNs that have been around since when the creation of The Fed occurred have only lost value over time. FRN has utility value for trade, but is an economic losing proposition. It has no interstice vale, just like Bitcoin.
When I was 5 years old, I could ride my bike to the bodega and buy a Coca-cola for 5 cents. Now it is at least a $1.00. That's what happened over 57 years to the value of the dollar.
You might want to reconsider Bitcoin, and study it further. It wasn't easy to understand the concept of Bitcoin, and it took me several years before I developed confidence in it. Bitcoin scared me, I'd check the price all the time. Now, I'll go a couple of days without checking Bitcoin or Silver.
BTW......I treasure my Engelhoard, but it has only lost money for the past several years. What's in your wallet?