A common argument levied against the crypto market is that virtual currencies like Bitcoin or Ethereum have no fundamentals or intrinsic value. That is, the blockchain reward system is built out of thin air. Some have even accused crypto assets of being backed by "vapor."
These arguments are of course baseless and only prey on fear and ignorance. Unfortunately, critics are successful in turning potential investors away from the blockchain and the opportunities that it engenders.
Part of their success revolves from well-meaning crypto advocates getting sucked into strawman arguments and other logical fallacies.
To get straight to the point, here's my recommendation!
If you ever get locked into a debate about whether or not cryptocurrency assets have intrinsic value, simply reply:
"Yes, crypto tokens do have intrinsic value, which is found in their proven ability to disrupt traditional investing markets!"
No one who is being intellectually honest can deny this fact!
I further explained the cryptocurrency market's intrinsic value in my nationally-distributed InvestorPlace.com article, "The Not-So-Crazy Case for $10,000 Bitcoin." On September 1, 2017, I wrote the following:
On the surface, the idea of $10,000 Bitcoin sounds crack-smoking ridiculous. At such a meteoric level, the digital coin’s price tag would exceed Alphabet Inc (NASDAQ:GOOG) or Amazon.com, Inc. (NASDAQ:AMZN) tenfold. These are groundbreaking tech firms. In sharp contrast, cryptocurrencies are speculative financial vehicles.
But one of the critical reasons why Bitcoin prices continue to astonish us has nothing to do with financial valuation. Rather, cryptocurrencies are “timeless.” Bitcoin is the first open-source investment in human history. You can be anyone, anywhere, anytime — so long as you have access to the internet.
In comparison, Wall Street operates on a shockingly limited schedule. The markets open from 9 a.m. to 4 p.m. EST. This makes trading on the West Coast quite troublesome. In addition, the stock market isn’t open on weekends, and American holidays.
Compare that to Bitcoin, which is open 24 hours a day, seven days a week. It doesn’t care about holidays. If you want to trade during normal business hours, fine. If you want to trade in your pajamas at 3 a.m., have at it!
Most importantly, because Bitcoin trades 24/7, it has nearly four times the trading hours of a Wall Street stock. And because cryptocurrencies trade on the weekends and holidays, the extra mileage adds up quickly.
Put another way, one year of Wall Street trading could be the equivalent of four or five years of cryptotrading!