Why Can Crypto Become an Investment Asset?

[Suba]

Cryptocurrency is not only considered a commodity or item that can be traded, but we can also use crypto as an investment instrument. High price fluctuations often give investors hope of gain. As a layman, I am often confused as to why crypto which is intangible and has no intrinsic value can be used as a very promising investment instrument. So in your opinion, why can we use cryptocurrency as an investment instrument?

 

[Kirubel]

Cryptocurrency is not only considered a commodity or item that can be traded, but we can also use crypto as an investment instrument. High price fluctuations often give investors hope of gain. As a layman, I am often confused as to why crypto which is intangible and has no intrinsic value can be used as a very promising investment instrument. So in your opinion, why can we use cryptocurrency as an investment instrument?

I know peoples believe the internet world and invest on bitcoin and other crypto coins which is not tangible asset, but the investment world is some times a gambling and if some peoples get profit from one thing every investors show interest towards that thing, for example NFT when some peoples talk about profitability of NFT many peoples invest on it, NFT is nothing but an art, but still peoples end up investing on it.

 

[Suba]

@Kirubel. I agree with you, crypto has value and is used as an investment asset because people have believe/trust, so basically the value of trust is like in paper money, not the paper itself is valuable, but the value of public trust in that money.

 

[Kirubel]

I agree with you, crypto has value and is used as an investment asset because people have believe/trust, so basically the value of trust is like in paper money, not the paper itself is valuable, but the value of public trust in that money.

You are right peoples give value for the money and for the number written on it and not for the paper it self, so peoples agree the value of the paper and they give value to it.

 

[Goldynn89]

People have attached value to it because of faults they found in the traditional finance system, and then technological developments started which actually add value to various sectors of our lives.

Follow the people and they'll lead you to the money, which is what makes cryptocurrency good as an investment asset.