Bitcoin, Ehereum, Ripple, Litecoin, and a few other high visible cryptocurrencies have made early investors very rich, very quickly. And they could make many more investors rich, provided that they continue to rise at the recent feverish pace that parallels big lottery Jackpots.
But that’s unlikely, as these investments cannot defy the numbers game. This means that would-be rich investors must look for the next lucky coin elsewhere on the cryptocurrency list, while the hype for the digital currencies lasts.
Source: Coinmarketcap.com, Saturday, January 13, 2018, 10.30am Still, picking up the next winners in the cryptocurrency space is a very difficult thing for a couple of reasons. One of them is that there are more than 1000 cryptocurrencies to choose from—1426 to be precise.
Another reason is that there are no “fundamental” metrics to appraise the “intrinsic” value of each coin, as is the case with conventional assets. The only thing available is a site with a promise the coin holds to change the capitalist world, should it be adopted to replace national currencies in day-to-day transactions. Here’s a quote from Eric Pichet, a KEDGE professor, regarding the “fundamentals” of Bitcoin, which applies to other cryptocurrencies.
“Bitcoin has some of the attributes of a headless currency. Nevertheless, it has no intrinsic value ‒ not even as a collector’s item because it is intangible,” emphasizes Eric Pichet. “Nor is it a financial asset like a stock or bond because it has no returns. Its only investment value lies in the possibility of appreciation bestowed on it by those who hold it: it is an asset with no underlying.” Read more from forbes.com…
thumbnail courtesy of forbes.com