Invest In Speculation?
We are always trying to learn new things when it comes to our investing strategy. Here is one way of thinking that might slightly change how you look at investments.
When we are investigating in a coin the first thing we look at is if they have a usable and working product. Most coins do not have a working product, so if one does we see that as a great thing and believe it gets a leg off on its competition.
The reality is that the crypto market is very young. Most of the investments being made are on speculation and hope. We are speculating that what they are trying to build will be good and hoping that it succeeds.
This speculation and hope can drive up price. People love hope.
When looking at something that is just an idea it is extremely difficult to put a value on it. For example, when Apple was just an idea could you have guessed the value to be $900 billion?
If you were able to do this then you would probably be the richest person in the world.
Now look at something that has a working product. You can see how many users it has, how much is being bought, ect. You can put an actual value on it much easier.
By being able to value something, you know how much it is worth. It gives investors an idea of what a coin should cost. This could cause the price per coin to not rise as high or as fast as something that does not have a value attached.
So going forward be sure to balance both your views on speculation and the actual value of a coin.