--snip--
the next bubble to burst is the stock market when investors realise these fiat markets are not worth the market cap valuations. because the market cap valuations are not based on any backed dollars per share/stock. they are based on current single share price multiplied by shares available.. much like step three
Umm..but isn't is true that "shares", "stock" "equity", whatever we call them do not need to be backed by dollars. It is not like Tether's claims on USDT being backed.
The price of a stock is actually considered to be based on its growth potential. Expectations of high future earnings can push the stock to be over-valued. Yet, this doesn't really justify a P/E ration of >500 for TSLA. But they are not alone to have such high valuations. A look a
this link will show that so many corporations have these right now.
To a value investor, all of those would be an eye-sore. There are a lot of Pharma companies in there. It seems like everyone is banking on a Post-pandemic boom similar to what happened in the so-called roaring twenties.