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0 sats \ 3 replies \ @immutable OP 22 May 2023 \ parent \ on: ∞/21M > $ × ∞ bitcoin
That remaining $9 million is unrealised potential until you sell that company for $10 million.
I just got my house valued at $70k more than what I bought it 3 years ago. Do I possess that $70k plus original value now?
That $10 million company's valuation will likely drop if another company comes out which solves the problem better. Investors will lose money, if they sell their unrealised potential loss.
the valuation is still $10 million… that is exactly how all assets are valued.
exhibit a, you just said your house was “valued” $70k higher.
nobody operates under the assumption that all their assets are worth zero until they magically become valuable when they are sold.
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You cannot simultaneously have a $10 million company AND the $10 million in liquid capital.
If I only have a dollar and purchase an apple at a market value of $1, I no longer have a dollar, I just have one apple.
My apple is valued at $1.
BUT... seasonal rains produce high yield, apple harvest reaches record high. There's an influx of apples on the market and due to this supply shock my apple is now valued at $0.25.
I have not yet lost 75% of what I paid for my apple. I still have an apple.
I can hold my apple, cold storage, and wait until the market price recovers and sell my apple, which is not a dollar, it is still an apple, for a dollar.
If that isn't straight forward enough I guess we just agree to disagree.
Appreciate the debate.✌️
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i never said i would have $10 million in liquid capital, i said the valuation is $10 million.
i just hope nobody on SN is under the illusion that one bitcoin will one day be equal to 1/21,000,000th of the world’s wealth.
that kind of math is off by 1-2 orders of magnitude.
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