Real Value in a Digital World: Why Bitcoin is Set Up for the Long Haul
The concept of investing in cryptocurrency can be difficult to wrestle with for more traditional investors. People often criticize their lack of intrinsic value, the fact that they're intangible, and their speculative pricing.
But instead of trying to value cryptocurrencies like we do stocks, it can help to think of them more like commodities. Physical commodities like gold, oil, and timber are priced relative to supply and demand. When we begin to approach the valuation of cryptocurrencies from this viewpoint, there is one in particular that meets many of the criteria of a traditional commodity: Bitcoin (CRYPTO: BTC).
Considering Bitcoin a commodity might be a novel concept. How could it be a commodity if it isn't representative of a tangible asset and doesn't provide any real use cases? However, when we take a look under the hood, it becomes apparent that Bitcoin's price could actually be representative of more than mere speculation.
Source Fool.com
