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<p>[QUOTE=&quot;Mr. Coin, post: 317203, member: 10681&quot;]With all due respect, this is incorrect.&nbsp; </p><p>&nbsp;</p><p>Something like a bond has an intrinsic value becuase it promises you fixed cash flow as a part of a contract.&nbsp; Even a stock promises ownership of a future value of cash.&nbsp; Each are priced based on the risk/reward preferences of a potential buyer, but in the end, there&#039;s something for the investor to hold on to.&nbsp; </p><p>&nbsp;</p><p>By contrast, I lump coins in with gold, oil, and pork bellies.&nbsp; The old thing you have to hang your hat on for valuation purposes is what the next guy is willing to pay.&nbsp; </p><p>&nbsp;</p><p>If a stock declines 90%, I can evaluate whether the prospects for the company make it a worthwhile purchase, and not concern myself with supply/demand.&nbsp; With a coin (or rare art), I need to ask whether the fundamental supply/demand situation has changed.</p><p>&nbsp;</p><p>Likewise, what you characterize as liquid is anything but.&nbsp; When you have to forgo 30% of the value of an asset in a bid/ask spread, that is not liquid.&nbsp; Contrast this with a stock where much less than 1% goes to the spread.&nbsp; There is no comparison.[/QUOTE]</p><p><br /></p>

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