1 upvotes, 1 direct replies (showing 1)
Because it has no connection to anything in the real world ~~except electricity~~, the value of ~~Bitcoin~~ $USD bounces up and down depending on news, events, and various frauds. Or however much companies want to arbitrarily raise prices.
Skittish investors might jump ship when the value of ~~Bitcoin~~ the stock market tanks, which would tank the value further as well as the entire economy and the value of $USD. As a result, the entire financial news industry ~~Bitcoin forums~~ are full of people hyping each other up to ~~hold their Bitcoin, memed as HODLing~~ make money by selling their stock to new investors for a profit.
Comment by kenlubin at 26/11/2024 at 21:04 UTC
1 upvotes, 1 direct replies
USD is a floating currency. It is legal tender in the United States and used day-to-day by almost all working Americans. It is backed by the full faith and credit of the institution of the US Federal Government, the guidance of the Federal Reserve, and strength of the American economy.
The NYSE is part of the American economy, but not the whole of it. When investors flee the stock market, they're usually not fleeing USD: they'll often invest in US government bonds instead.
Looking at stocks: the value of $NVDA depends on the economic activity of Nvidia; its customers; its competitors; future expectations of revenue and value.
Sure, the delusions and aspirations of investors play a major role, but there is substantial real world economic activity behind $NVDA (and USD).