Why I Invested in Bitcoin and Ethereum
At the outset, everyone should understand that cryptocurrencies fundamentally differ from stocks. Stocks have intrinsic value -- they represent a real piece of a physical business. In the short term, stocks can swing up and down for no apparent reason, but long-term, as a company's intrinsic value increases or decreases, the stock tends to move in the same direction. By contrast, cryptocurrencies have zero intrinsic value -- they're just computer code. That makes future token prices hard to predict.
However, I believe there's a fundamental economic principle we can use to our advantage. It's the principle I used when deciding to buy bitcoin and Ether (the tokens for the Ethereum network) in 2018. And it's the same principle anyone can use to today to guide their thinking about any cryptocurrency investment.
Source Fool.com
