Forget Bitcoin: Buy This Blockchain Stock Instead
A constantly changing narrative is a telltale sign that something is a bad investment. The argument for bitcoin a few years ago was that it would replace fiat currencies like the U.S. dollar. It didn't, and it probably never will. No one's going to use a currency that wildly gyrates in value and isn't backed by anything at all.
Now, bitcoin is apparently "digital gold," a store of value that can protect investors from inflation. Like real gold, there's a finite quantity of bitcoin that can ever exist. But unlike real gold, there are an infinite number of potential competitors. Cryptocurrencies are a dime a dozen, and there's really nothing special about bitcoin other than its name recognition.
The price of bitcoin has soared over the past year, up from less than $10,000 at the beginning of 2020 to nearly $40,000 today. I would wager that most people buying bitcoin are doing so because the price is going up, not because they actually believe in its utility. That's what happens during a bubble -- the rising price becomes the narrative, the fear of missing out overwhelms rational thought, and people concoct all sorts of post hoc justifications for investing in things with little to no substance.
Source Fool.com
