Bitcoin Forum

Other => Beginners & Help => Topic started by: bitmover on March 19, 2018, 11:01:03 AM



Title: Blue-chip stocks and Bitcoin
Post by: bitmover on March 19, 2018, 11:01:03 AM
Recently I made this info-graphic for an art contest (https://bitcointalk.org/index.php?topic=2957836.msg30364090#msg30364090), about blue-chip stocks and bitcoin. I think people here would be interested in it.
The idea was based on this cointelegraph article (https://cointelegraph.com/news/digital-currencies-to-invest-or-not-to-invest) and investopedia (https://www.investopedia.com/terms/b/bluechipstock.asp).

As we can see, Bitcoin already has many blue-chip stocks' characteristics:
Longevity (9 years old), Well established, Market Capitalization in the billions, market leader, mainstream investment....

I was thinking about it, and no other cryptocurrency share all those attributes. For example, Ethereum shares most of them, but lacks the longevity (less than 5 years old).

Bitcoin performance is amazing, but some blue-chip stocks like Amazon and Apple have similar or even higher performances too:

https://i.investopedia.com/content/chartadvisor_article/bitcoin_looks_a_lot_/cc_compare.jpg          http://i2.cdn.turner.com/money/galleries/2011/technology/1101/gallery.apple_sales/images/apple-financials.gif
source (https://www.investopedia.com/news/bitcoin-looks-lot-early-amazon/)                                                                                                                              source (http://money.cnn.com/galleries/2011/technology/1101/gallery.apple_sales/index.html)

On moments like this, remember the strong fundamentals Bitcoin has before any panic sell.


Title: Re: Blue-chip stocks and Bitcoin
Post by: kolesozw on March 19, 2018, 11:13:52 AM
I think both are incomparable...

Blue-chip companies in your list have 500 000 workers, on monthly salary.
vs
Bitcoin is decentralized.

If you took some dot-com graphs before the bubble, you could find the same similarities. Bitcoin is Bitcoin!


Title: Re: Blue-chip stocks and Bitcoin
Post by: Beerwizzard on March 19, 2018, 11:26:29 AM
Blue-chip companies have their products and their stock price is based on management and performance while Bitcoin price depends mostly on its adoption and speculations. That makes the whole comparison inaccurate. Blue chips are the most stable companies (like Apple, IBM, Microsoft, The Coca-Cola Company, Ford, Alphabet) and this is the safest type of investments. Unfortunately I can't say the same about cryptocurrencies.
The only type of stocks that BTC can be compared with is the ones that raised in dotcom bubble.


Title: Re: Blue-chip stocks and Bitcoin
Post by: hase0278 on March 19, 2018, 12:58:52 PM
Blue-chip companies have their products and their stock price is based on management and performance while Bitcoin price depends mostly on its adoption and speculations. That makes the whole comparison inaccurate. Blue chips are the most stable companies (like Apple, IBM, Microsoft, The Coca-Cola Company, Ford, Alphabet) and this is the safest type of investments. Unfortunately I can't say the same about cryptocurrencies.
The only type of stocks that BTC can be compared with is the ones that raised in dotcom bubble.
At least I can say that for now, OP is right in his comparison only when it is in terms of crypto. I think large swings are normal since crypto market is relatively new when compared to stocks, Therefore it is too early to call bitcoin a bubble. Somehow, I agree with your statement that BTC itself can be compared with the ones that raised in dotcom bubble, because of the excessive speculation of users and investors.


Title: Re: Blue-chip stocks and Bitcoin
Post by: Beerwizzard on March 20, 2018, 02:12:13 AM
Blue-chip companies have their products and their stock price is based on management and performance while Bitcoin price depends mostly on its adoption and speculations. That makes the whole comparison inaccurate. Blue chips are the most stable companies (like Apple, IBM, Microsoft, The Coca-Cola Company, Ford, Alphabet) and this is the safest type of investments. Unfortunately I can't say the same about cryptocurrencies.
The only type of stocks that BTC can be compared with is the ones that raised in dotcom bubble.
At least I can say that for now, OP is right in his comparison only when it is in terms of crypto. I think large swings are normal since crypto market is relatively new when compared to stocks, Therefore it is too early to call bitcoin a bubble. Somehow, I agree with your statement that BTC itself can be compared with the ones that raised in dotcom bubble, because of the excessive speculation of users and investors.
Bitcoin is too volatile to becompared with blue chips. If they could drop by 10% just for 1 day then they probabky wouldn't be so safe and reputable. The other and pretty positive thing that I want to point out about BTC and dotcom bubble is that it is not that bad. People are getting scared because of a "bubble" and this is wrong. The poiny is  that many companies (Amazon for example) startet  at those times and got extremely hyped. Yes, the bubble blew up but the valuable companies are still working. The same could be applied to BTC, the bubble may blow up bit it will still worth something.


Title: Re: Blue-chip stocks and Bitcoin
Post by: jtipt on March 20, 2018, 02:53:29 AM
If you took some dot-com graphs before the bubble, you could find the same similarities. Bitcoin is Bitcoin!
I don't think OP is disagreeing on that, he is just point out the similar market trends that both of them share.
But yeah comparing it to bluechip only for random trends which is just coincidence is fine, making anything out of it is useless. Both are two different ends of a rope. IMHO comparing bitcoin to any stock is wrong as bitcoin is meant to be a currency.


Title: Re: Blue-chip stocks and Bitcoin
Post by: The Sceptical Chymist on March 20, 2018, 03:01:22 AM
Blue-chip companies have their products and their stock price is based on management and performance
Uh, yeah.  That's correct and I don't think there's any comparison between ANY stocks and bitcoin.  They're two different birds altogether.  The main thing that stocks and bitcoin have in common is that they both have prices that fluctuate, exchanges where they're traded, and idiot fucking suckers who will buy at the absolute top of a bull market bubble.  My last point there is key.

I'm a firm believe that one should own good dividend-paying stocks for the long term.  Getting into a dividend reinvestment plan--that a lot of companies offer through Computershare--is a great way to watch your investment(s) grow.  There's nothing of the sort with bitcoin.  It's never going to pay dividends, and the only way you're really going to make an actual profit is by selling your bitcoin for a higher price.  It's the second-sucker concept in action. 

Eh, but I still love bitcoin anyway.


Title: Re: Blue-chip stocks and Bitcoin
Post by: bitmover on May 08, 2018, 06:52:39 PM
I just pointed out some similarities between the two.

 I know they are different assets, and Bitcoin is not a company looking for profits to pay dividends. Although some people erroneous call forks dividends, in a pure financial point of view they  have some similarities too.

I like this comparison, between stocks and bitcoin, and I think it's a good way to explain Bitcoin  characteristics to  people who are new to bitcoin. I think this comparison is inevitable for people who invest in the stock market.


Title: Re: Blue-chip stocks and Bitcoin
Post by: timerland on May 10, 2018, 09:21:37 AM
I mean, they are definitely different, but they also have their similarities.

I think that OP is simply trying to point out the similarities and trying to demonstrate that BTC can already be considered to be a valid, legitimate, and somewhat mature investment (at least compared to the rest of the crypto sector) and asset, comparable to blue chip stocks. Even if they are different in how profits are generated or their values stem from.

At the end of the day, I do think that bitcoin is going to continue to thrive in the long term. It's going to continue to be the leader of the entire crypto sector, and even though it doesn't generate any dividends per se, its property of being decentralized and a store of value for the long term will definitely win over investment in the long run.


Title: Re: Blue-chip stocks and Bitcoin
Post by: bitmover on January 07, 2019, 02:58:21 PM
I posted this a while ago, and I believe it's an interesting comparison between Bitcoin and blue Chip stocks.

Bitcoin is a like a blur Chip of cryptos.

Friendly bump, and moving topic to a less spammy board.


Title: Re: Blue-chip stocks and Bitcoin
Post by: r1s2g3 on January 10, 2019, 04:45:24 PM
Nice comparison OP, I heard that Amazon and facebook grew a lot . There is always advice to invest in FANG (Facebook,Amazon,Netflix,Google)  shares.
 My understanding is innovative companies and concepts(bitcoin) will continue to grow so better invest in them.


Title: Re: Blue-chip stocks and Bitcoin
Post by: Velkro on January 11, 2019, 12:51:19 AM
Recently I made this info-graphic for an art contest (https://bitcointalk.org/index.php?topic=2957836.msg30364090#msg30364090)
I will judge this only by its cover. Graphics are really bad to be honest. I dont want to you feel bad, but you have a lot to improve.
Look at most famous infographics and try to see patterns why it looks so different than yours.
This is first step, good luck and thanks for doing anything for bitcoin


Title: Re: Blue-chip stocks and Bitcoin
Post by: bitmover on January 11, 2019, 09:20:55 AM
Graphics are really bad to be honest. I dont want to you feel bad, but you have a lot to improve.
Look at most famous infographics and try to see patterns why it looks so different than yours.


No problem man. I am not a professional and never tried to be. This was just an old contest that I participated when I was a newbie , to win a few merits.

I am satisfied with that ugly graphics as long as the content is good enough