Is Buying Crypto Assets “Investing”
I always hear people saying that blockchain is being used for all kinds of interesting things that gives them intrinsic value, but that&#x27;s not why bitcoin&#x27;s price has gotten so high (and recently dropped so dramatically, but still very high).<p>Bitcoin and most other cryptocurrency is almost exclusively used for speculation. People generally buy bitcoin for one reason and one reason only: to get rich from selling it later.<p>A currency driven in this great a percentage by speculation is a dangerous bubble. Until it lives up to the hype and this blockchain ecosystem actually exists in a density large enough to realistically support the currency&#x27;s valuation, I would listen to Warren Buffet&#x27;s advice.<p>There&#x27;s a lot of adherents who are reaching fanatical levels of devotion to blockchain, and those types will explain away any unbeliever&#x27;s lack of faith. The fact remains--cryptocurrency is almost entirely driven by speculation. A sustainable currency doesn&#x27;t do that. A Ponzi scheme does that.<p>A lot of the blockchain applications seem really kind of flimsy and hollow, as if they are really there to prop up a crypto fortune in the hopes that some kind of ecosystem develops and prevents the inevitable crash. Those probably aren&#x27;t going to work. Once again, it points to fact that the primary purpose of the currency is currently just a get rich quick scheme.