Crypto has no intrinsic value… .no stream of free cash flows stretching into the distant future to pay dividends etc.
But as it has a price it has a value….but only a “price value” and really only a sale price value …as you need to sell to crystalise the value.
Assets with intrinsic value have a price and a value which is independent of each other …a “value value” so to speak.
Crypto’s price IS its value.
And is purely psycologically determined.
Therefore the investment in the great propaganda apparatus on the internet to influenence the price of cypto’s.
The bigger the “Kultisphere” surrounding a crypto the higher the price.
This is very similar to the kult stocks, meme stocks, SPACS etc.
Thus Crypto is a great speculation but a terrible investment.
Really one for the traders using technical analysis.
Or for those who can measure the “Kultiness” level of the crypto and whether it is increasing or decreasing.
Price follows Kultiness!!!!
This is usually measured/signalled by changes in trading volume, number of youtube promotors and youtube promoter hits, google searches, mentioned on bulletin boards, subreddit posts, being added to or being subtracted from crypto exchanges, facebook post mentions, tweets, total market cap and market cap growth, etc etc.
In other words the whole great and varied apparatus of internet “Atttention” in all its myraid expressions is measured to determine a crypto’s level of “Kultiness”.
I am sure there is a vast army of algos/traders/hedge funds that measure all this and use these stats to trade crypto’s.
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