Many people think that meme-based asset price rises are bubbles and speculation. In particular, investors with knowledge of the asset management business have a stronger mindset that the appropriate value of an asset should be based on cash flow, and tend to think that an asset without cash flow is a speculative asset with no intrinsic value.
Of course, there are cases where a valuation method based on cash flow is appropriate depending on the type of asset. However, the dichotomy in which the value of an asset is limited solely to the existence of cash flows and that no cash flows are worthless is a very narrow way of thinking. This can be easily seen through examples around us. The asset class referred to as “alternative investment,” which the asset management industry has been actively incorporating into asset portfolios since the 2000s, includes assets that do not have regular cash flows, such as precious metals and crude oil. Art and expensive wines, which have been used by the wealthy for generations to store their wealth, are also non-cash-flowing assets. If you broaden your horizons just a bit like this, it's easy to see that the sources of asset value are very diverse
A broader discussion of the fair value of assets requires an open mindset that moves away from the binary and one-dimensional approach. As Figure 4 showed earlier, ‘value’ is a subjective and situational concept that is not absolute and objective. Again, for example, art objects or expensive wines, these are culturally based assets. Those who do not share this culture feel no value. This is because value is a social and cultural phenomenon created in human interaction
From this point of view, it is rather natural that meme-based assets have value. The fact that mankind gave value to shells, gold, and silver in the beginning and used them as currency, and the act of some young people in Korea today trading shoes with a specific story at high prices are extensions of the most humane acts that have lasted for at least 10,000 years. It is a common social phenomenon in
BUT! !BE !CAREFULL ! MEME IS ONLY MEME!
