Of course Warren buffett doesn't like it. He has made his name on being able to tell if a stock's price is above or below it's fundamentals. Bitcoin doesn't have fundamentals and it doesn't pay dividends.
`Metcalfe's law states that the value of a telecommunications network is proportional to the square of the number of connected users of the system (n2)` https://en.wikipedia.org/wiki/Metcalfe%27s_law
That doesn't mean that you should invest in air.
When I said fundamentals I meant something more on the lines of:
cash flow
return on assets
conservative gearing
history of profit retention for funding future growth
soundness of capital management for the maximization of shareholder earnings and returns
Taken from https://www.investopedia.com/articles/fundamental/03/022603....
I am long on bitcoin, but not because it has any of the properties of a stock.
are contracts being written in bitcoin yet? if so, that'd be some momentum to help keep the bottom from falling out.
and i don't think taxes are really denominated in USD: they are paid in USD, but they are denominated in % of «taxable event», converted to USD, at whatever the conversion rate happens to be. right?
i guess a national currency is a little more "real" than something like bitcoin because you have one more-or-less guaranteed believer in it, the nation issuer. but it still doesn't seem that different to me than something like bitcoin. it basically just has value because it's useful for it to have value, and it's made scarce enough that it can serve for that purpose.
Usually, central bank tries to manipulate supply and velocity of USD so it doesn't become too scarce. Because short supply of money leads to deflation and stagnation of the economy.