Although I've been around this whole circus for a while now, the longer I stay the more it seems to me that crypto investing is not like other forms of investing.
What I mean by that is that even though we allegedly have something that is actually "a form of alternative payment" — hence the term currency — we are also dealing with something here that lacks the underlying tangibility of, for example, investing in stocks.
For example, when you put money into a computer company's stock you're buying into a business plan, and you technically speaking own part of a company that has plant and equipment and tangible goods it's selling, all with some kind of profit motive at the end.
In most cases, crypto doesn't have a profit motive. All there is is a token. In some senses that does make it very much like currency in that you can speculate on "exchange rates."
Except this is different because, instead of working with tiny differences in a form of arbitrage, you're working with the expectation that there are going to be large price swings preferably in the upward direction.
Sure, we could argue that a crypto project having a white paper is like a business with a business plan but that isn't really true, is it?
The vast majority of crypto and blockchain projects I have looked at don't actually have an actual business plan that revolves around ways to generate cash flow and revenue. We're just living on the idea that "Project X" is going to be more valuable than a different project and therefore will appreciate in price. But why should it? Where are the business fundamentals that would make it so? Are there any fundamentals?
For the most part, I have not done much in the way of investing in crypto for the very reason that I am struggling to find any fundamentals that would help me choose one asset over another.
Clearly, I still have a lot to learn! I still operate under the paradigm that you have to use crypto to make money, rather than just expect the crypto itself to make money out of thin air.
One of the reasons I've always liked Hive is precisely the fact that Hive actually has real tangible projects that have a profit motive of their own. When we blog we get paid. Some of the games here are the same. We buy into the game — which generates revenue — and the games end up growing, the price of their token rises.
This is just one of many topics I plan to be exploring more in the upcoming months as I return to a more regular blogging schedule.
Thanks for coming to visit, and do leave a comment if you feel so inclined! This is "social" media, after all, so it helps everyone when we make the effort to BE social with our fellow content creators!
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Posted with proof of brain