Crypto

The case of Sam Bankman Fried is opening the eyes of many including my own. He created an exchange called FTX where people could buy and sell cryptocurrency. He then created a marketing company called Alameda to create a demand for his crypto. They got a few investors to buy the crypto and pushed the value up. Other investors saw the value increasing and wanted to get on the band wagon so they started buying which pushed the stock higher. Sam Fried is quoted as saying it is not the intrinsic value that matters but the perception. Now this may sound strange but take a close look at Tesla. This company has $24 billion dollars of assets in all of its facilities but its stock is worth over $900 billion dollars. By comparison Ford, GM and Toyota combined are worth $250 billion. People are buying Tesla for the same reason the buy crypto. They think it is going to go up in value. At least with Tesla there is some tangible assets but with crypto there is nothing but thin air.