Price doesn't matter. Here is why.

I have wanted to do this post for a long time. I believe that most people who "invest" in crypto projects today do so because they have heard of those who bought BTC when it was worth $1 and sold it when it was worth $20k and became millionaires in the process of investing $1k - 5k, not really because of the technology it represents. If you are one of those, I recommend that you read this post and if you still have questions, ask them and I will try to be clearer when answering you. If you are not one of those you have my congratulations, you are an OG of the crypto market and this post does not necessarily apply to you but maybe you can have some fun with it.Answers:Simple answer: Price does not necessarily have to be correlated with technology or how useful a product or service is. They are two wildly different things.A little more elaborate answer:The first thing you have to understand is that what gives value to something. Ex: BTC has a single value (a single functionality), move monetary value from point A to point B. Aka: Pay someone. (You can argue about its scarcity, but that doesn't necessarily have to impact the dollar value for example). What matters is that you can pay without having to go through the traditional system and nobody can (until the date of publication of this post) block your transaction.Another example: ETH is the currency used to pay commissions within the Ethereum network. It is not made to pay for goods and services like BTC, it is made to pay the expenses involved in a smart contract (ONLY on the Ethereum network).Yet another example: Governance tokens (KNC for example). These tokens work like traditional shares. The value they give you is ONLY being able to have a voice and vote in a project (sometimes they also offer to receive profits from the project in proportion to the value of your governance tokens but this is not always the case).The Price (of any asset) only goes up in one scenario: Buyers > Sellers = Demand > Supply (The opposite for the price to go down)Many of the crypto projects are decentralized. This means that we do not have to trust an institution or person for the project to work. This in itself has tremendous value and in my case I don't care if it is worth $1 or $ 50k. Remember that the value of something cannot always be calculated in dollars​Free advice (if you don't want it, just ignore it): Don't buy something if you don't know what its real value is (Unless you are a trader, in which case you should already know that is very different from making investments) . Do not get carried away by the most popular """investment""" of the moment because if that is the way you "invest", you will be all your life trying to reach the pump and when you arrive you will already be 50% (being optimistic) behind the majority.

Submitted February 22, 2021 at 08:15AM