Is Bitcoin Money?
How does it compare to other types of money?
I used to invest in stocks. These days, thanks to medical bills, I’m not invested in much of anything, but I still keep tabs on the market. I hope I’ll be able to invest again once I’m done with cancer treatment.
However, there were metrics I used when I was investing in the stock market.
For example, there was a company’s P/E (price-to earnings) ratio. There was also it’s P/B (price-to-book) ratio. Other things I’d look at — its market share and the popularity of its products. The executive team running the company.
None of these are a good way to measure Bitcoin — it has no earnings and no book value. There is no tangible product and no CEO, CFO, or COO.
So why would anyone buy Bitcoin?
Bitcoin is a new type of asset. Some people and even governments have adopted it as a new type of currency. Many think that Bitcoin is superior to other forms of money and will better resist inflation.
Some people think that Bitcoin has changed the global economy in the same way that paper currency changed things when it replaced gold and silver as the means of transaction.
Because Bitcoin is truly novel, it confuses even investment professionals.
