Well, there are two major camps of cryptos I view.
Protocols vs. Utility Tokens
Something like Steem is what I would consider a protocol
Something like Basic Attention Token I would consider a utility token.
When comparing protocols to stocks, that is like trying to compare Apple Stocks to the internet itself, does not make much sense to do that.
When comparing utility tokens, they act much like reward points where they can be redeemed for certain goods and services, IE advertising using the brave browser.
I believe protocols that become massively adopted have the potential to be a much greater store of values then shares in a centralized company. For the last ten years, if you have picked the right cryptocurrencies they have proven to be a better store of value overall then pretty much anything else. Will this trend continue? We will see. Many of course will die, just like 99% of the .coms died, but if you do the research, it becomes clearer at which blockchains have the best chance of being apart of that 1%.
That is an interesting point. At the moment, I feel like there's no use case for many of the coins associated to projects. Many of them don't even need a coin to work. So, where is the demand of those crypto currencies going to come from? I mean, why should people buy them for?
Anyway, I have been on the sidelines of pretty much everything except for BTC, MCO and STEEM.
I will try to get in some other projects later this year but I'll need a confirmation that the bear market is over before risking on any other project.
Well, there are two major camps of cryptos I view.
Protocols vs. Utility Tokens
Something like Steem is what I would consider a protocol
Something like Basic Attention Token I would consider a utility token.
When comparing protocols to stocks, that is like trying to compare Apple Stocks to the internet itself, does not make much sense to do that.
When comparing utility tokens, they act much like reward points where they can be redeemed for certain goods and services, IE advertising using the brave browser.
I believe protocols that become massively adopted have the potential to be a much greater store of values then shares in a centralized company. For the last ten years, if you have picked the right cryptocurrencies they have proven to be a better store of value overall then pretty much anything else. Will this trend continue? We will see. Many of course will die, just like 99% of the .coms died, but if you do the research, it becomes clearer at which blockchains have the best chance of being apart of that 1%.
That is an interesting point. At the moment, I feel like there's no use case for many of the coins associated to projects. Many of them don't even need a coin to work. So, where is the demand of those crypto currencies going to come from? I mean, why should people buy them for?
Anyway, I have been on the sidelines of pretty much everything except for BTC, MCO and STEEM.
I will try to get in some other projects later this year but I'll need a confirmation that the bear market is over before risking on any other project.
Good luck on your investments, every one!
Warren Buffet didn't invest in some tech stocks in the 90's because of the fundamentals. One of the few bad decisions he's made.