> This is the same for every stock traded on any stock exchange in the world.
While we do live in an age where stocks seem increasingly untethered from reality, that's still not remotely true.
Stocks are, in theory, based on the value of the company. Which is something you can calculate based on its assets and revenue.
Granted the math doesn't add up for a lot of companies right now, but that's an indication we're in a bubble not an invalidation of the concept of stocks.
The market cap is still a simple calculation of the last share price * the number of shares outstanding. There's no magic there. The market cap is subject to huge swings as well if someone were to suddenly sell off a big chunk of shares.
Really? All your cash is worthless? Well that sucks but tell you what, I'll help hedge your losses by swapping it all for a big mac meal (which I assume I'll have to barter for, but I'll do that for you).
While we do live in an age where stocks seem increasingly untethered from reality, that's still not remotely true.
Stocks are, in theory, based on the value of the company. Which is something you can calculate based on its assets and revenue.
Granted the math doesn't add up for a lot of companies right now, but that's an indication we're in a bubble not an invalidation of the concept of stocks.