Does cryptocurrency have intrinsic value? For bitcoin and other crypto to have value, it needs to have intrinsic value and I’ve just found the $80 billion truth, the real value of cryptocurrency. Get up to $250 in free bitcoin when you open an account on BlockFi https://mystockmarketbasics.com/blockfi
Is cryptocurrency worthless? Warren Buffett and John Paulson seem to think so. Warren Buffett, the Oracle of Omaha, thinks bitcoin and the altcoins are going to zero because they have no value. It’s actually funny that Paulson says bitcoin is worthless when his favorite investment, gold creates no cash flows either…but the question remains, What is the Real Value of Cryptocurrency?
Investors have argued the network value of bitcoin as well as a store of value and it’s position as digital gold. None of those ideas gives it real, intrinsic value though. I’ve found a source of value in cryptocurrencies that could be worth trillions. It’s something that has remained a secret for too long but I’ll explain it in this video.
In this video, I’ll show you where that cryptocurrency intrinsic value comes from and how to know how much crypto is worth. I’ll then show you the growth in that value and what it means for cryptocurrency prices. Finally, I’ll reveal the five best cryptocurrencies to buy now based on this value as well as the risks.
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To understand how crypto has value, you need to know how the blockchain works. The blockchain is a shared spreadsheet that is constantly being added to through projects like decentralized finance (DeFi), NFTs and other applications. Every time something is added or changed, it has to be verified on every ‘spreadsheet’ on every computer and that requires an immense amount of computing power. To compensate for that computing, people are paid in crypto.
So the increase in applications running on the blockchain means an increasing demand for cryptocurrencies to pay for validation of the changes. Crypto is the gas that makes the blockchain engine run.
And growth in those blockchain uses is surging. Growth in DeFi alone has exploded over 1000% over the last year and total value locked (TVL) has jumped to $84 billion. TVL is the amount of cryptocurrency set aside to pay for the applications to run and is the best measure of intrinsic value for crypto. Of course, that $84 billion in crypto value doesn’t compare to the $2 trillion in crypto market cap but it’s growing so fast that it could soon be a much larger piece of the valuation. This is what bitcoin critics like Warren Buffett do not understand!
Ethereum is the standout in this idea of intrinsic value because that’s where most of the applications are being created but other altcoins are being created to solve problems in the Ethereum blockchain. Aave and Uniswap are two of the most popular and have seen prices surge over the last year. Polygon MATIC is one of my favorites and my biggest investment after bitcoin and Ethereum.
Still not investing in cryptocurrency? Don’t miss the rest of the videos in our cryptocurrency tutorial series for beginners!
Two ways to value bitcoin and why it could go to $190,000 in a few years! https://youtu.be/hrTVtv-caiE
Price forecasts for 7 other cryptocurrencies including Ethereum, Litecoin and Stablecoins https://youtu.be/8IYNyn-QB_M
Bitcoin vs Ethereum: Which is the Better Investment? https://youtu.be/UWgWcsA8dSQ
0:00 Is Cryptocurrency a Good Investment?
2:40 Blockchain and Cryptocurrencies Explained
3:34 Intrinsic Value in Cryptocurrencies
4:34 What Drives the Price of Cryptocurrencies?
6:00 Growth of DeFi and other Blockchain Uses
6:56 How Much are Cryptocurrencies Worth?
8:04 5 Best Cryptocurrencies to Buy Now
11:35 Risks to Crypto Value
#cryptocurrency #crypto #bitcoin
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Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.