I don’t know about Ponzi scheme. Maybe Tulip mania. Again, I have no issues with people buying Bitcoin. Just, I am not sure about how you can objectively value it. At least you can do that with a stock or a bond. Hence, speculation.
“ Just, I am not sure about how you can objectively value it. At least you can do that with a stock or a bond.”
Ultimately, you value based on demand.
Good current examples of companies with little demand currently and small valuation: coal, oil, uranium, shipping.
Sure, they still have fire sale assets if you break them up and sell the pieces.
Now is actually the best time to buy these, if you are willing to hold for a long time.
Assets with ridiculous valuation: Tesla
Tesla PE Ratio:1,417.01 (as of 12/31/20)
1,400 years to get your investment back, based on what Tesla earns per share.
Total nutso!
BTC is valued by the demand of buyers minus sellers, limited supply, etc.
Simple as that.
Someday, that demand may dry up and valuation will adjust with it, like Tesla.