Is Buying Crypto Assets “Investing”
&gt; Bitcoin and Zcash are stores of value that allow users to participate in this decentralized application space without the need for fiat currencies.<p>How is Bitcoin a store of value?  An ounce of gold is a store of value - someone had to do the work of finding and mining it, and it can be used to fill teeth and conduct electricity.  Gold is portable, uniform, durable and divisible, so it is a commodity that has good currency qualities.  But almost every commodity that can be sold is a store of value - what value does Bitcoin have?<p>Bitcoin boosters scout around the world for some commodity to compare it to and fail, as it is inherently valueless and ultimately worthless, i.e. ultimately worth nothing.  So they come across the US dollar, an item whose value has a question mark over it.  So they say &quot;this is like a dollar&quot;.  Of course, one can then just say a joke cryptocoin like Dogecoin should have a market cap that is over half a billion dollars.  And it does ( <a href="https:&#x2F;&#x2F;coinmarketcap.com&#x2F;currencies&#x2F;dogecoin&#x2F;" rel="nofollow">https:&#x2F;&#x2F;coinmarketcap.com&#x2F;currencies&#x2F;dogecoin&#x2F;</a> ).  Even Dogecoin&#x27;s creator says the half billion dollar market cap is all just a big joke.<p>Bitcoin doesn&#x27;t even have the portable quality of a good currency.  Bitcoin transactions have hit large transaction latency issues (or had them when I last looked into it when I did a transaction a few months ago).  So the &quot;currency&quot; isn&#x27;t even good as a currency any more.<p>US fiat currency was indirectly backed by gold until 47 years ago, and with the window then shut, it is now doubly-indirectly backed by that gold (the US did not get rid of its 8000 tons of gold at Fort Knox and other locations in 1971 when, apparently, a magic wand was waved over Treasury department printing presses, giving them the power to create value).  I won&#x27;t go into why the dollar and Bitcoin are not equivalent here (but if someone makes a coherent explanation why the US did not get rid of its 8000 tons of gold, I will).<p>At least Pets.com, subprime new housing development real estate and so forth had value at some level.  These cryptocurrencies have no value.  They are all going to crash.  I wondered for a while when and how that will happen, but now I know - things like Dogecoin and its clones will bring it down.<p>Another thing - anyone who bought Bitcoin, Ethereum or Lumen in January is currently under water.  All three currencies dipped at that time, and in fact all cryptocurrencies dipped simultaneously.  So when the (total) crash comes, I predict all cryptocurrencies will go to zero.<p>As Keynes said, markets can remain irrational longer than you or I can remain solvent.