Dogecoin, the Epitome of Post-Modern Investing. Bitcoin Tech Talk #241
The market is quite irrational and has been for the past year. Not only are stock prices crazy multiples of profits, or even earnings, we’re seeing behavior from the market that can only be described as completely unhinged. At least with non-profitable companies, there’s some prospect for future growth to make up for the large premium against profit or even revenue, but with some pumps going on today, there’s not even that.
We’ve seen a lot of stocks pump that have no fundamentals, including companies with little prospects for growth (AMC, GameStop), bankrupt companies (Hertz), and of course, altcoins, much of which hasn’t shown any development at all, let alone usage. This is not a new dynamic per se. Bankrupt stocks have been known to trade at levels that don’t make any sense given that they’re supposed to be worth zero. However, we’re seeing them more frequently and in greater numbers. In this article, I’m going to explain what I think is the cause and how we got here.
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