Crypto currencies are now worth over 1trillion dollars, and they are creeping towards gold's market cap ($10Trillion). Bitcoin has survived the test of time and I don't think it will ever die. I still do not understand the hype behind it, and can't justify investing money into such an asset. But I accept, it is no different than gold or over hyped stocks - People invest in it because, they believe others will buy it for higher prices later.
Now, Digital Art ownerships are sold as NFTs for millions of dollars. Recently a JPEG image was sold for $69million USD.
What is the use of that purchase? I could only see Nothing.
Now, all crypto currency people are jumping on that and I am watching it with complete confusion. I have only few question.
- Is this all because of the pandemic and the currency printing ($1.9T)? What will happens when the economies stabilise?
- Where is this money coming from? Did people have 1Trillion dollars in the bank?
- Blockchain mining is becoming expensive and the gas prices are only going to go up. Why no body is thinking about it?
- Why other coins could not beat Bitcoin?
- Why are you investing or not investing in Block chain tokens?
People are investing in millions and they are richer than me. So, they are not stupid. I just feel like I am missing something obvious.