A lot of people ask about the intrinsic value of Bitcoin,
and try to value it just like they value stocks. Let's try to
understand this better.
Any stock's price increases because investors see it's
value increase (here value means earnings of the
company by selling something, reinvesting capital and
growing it's business and generating more money)...
You know that investing in the stock market is important to beat inflation, but have you ever wondered why does everything become more expensive over time?
Let's understand this in a very easy way.
Inflation is basically when you have to pay more money for the same value you’re getting .
Meaning either the price of the goods increases (production and supply) or the value of the exchange unit, i.e. the currency decreases.
What drives our day to day actions, why do we do what we do is very important to understand before we start investing to make better investment decisions.
Ultimately the companies you're investing in are selling to other humans. So, it's important to understand humans.