The main theory behind cryptocurrency value is if enough people agree it is valuable, then it becomes more valuable
The one thing in crypto that I find confusing and making no rational sense is the valuation given to certain projects who if we are honest have no proven track record. The idea that one project is worth more than another when both have achieved nothing and no one knows if they ever will seems crazy. The truth is many projects are going to fail and will never amount to anything of value.
I can remember my early days of crypto and one of my investments was VERGE (XVG) and don't even ask why as I have no idea. Maybe the hype of what was going on was louder than others and yet today it is very quiet and wont be fooled twice.
The reality is the Verge team have done very little since 2015 and if there is no partnerships and use cases they are no different from the crypto's that have come and gone. I see no value and why I would never invest into this project.
Development is the key that will distinguish why one crypto is worth more than another through generating a use case. Marketing and shilling may have worked back in 2017/18, but that can only last for so long before the serious questions are being asked.
Speculation on what it could be is where the value is added and it is all down to marketing and community shilling. The true value has not been unlocked as yet and why many projects feel they are undervalued for what they offer. I think we all feel like that with our speculative investments.
When we see projects like Link achieve a high of $52 and now sitting at a little over $6 you have to ask yourself how did it get to $52 in the first place. There was no real ground or justification for this type of pricing yet investors somehow made it rise to that valuation.
The crypto projects I invested in and have been slowly increasing the size of those bags is not built around hype but more of a genuine belief the development will unlock it's genuine use cases and utility. I do feel the research involved has taken a large percentage of the risk away moving from speculation being a 50/50 to a more solid 90%.
A project valued at $50 million could easily become a $50 -$100 billion within a very short period of time with use cases compared to hopium and speculative investors. Crypto projects do not have an endless piece of string for time and they will need to start delivering soon. Projects that have been around for 8 or 10 years and have nothing to show for that time period are running the risk of a loss of confidence in the team and any utilities going forward.
The we are still early can only be applied for so long and how long must the piece of string be? We know the potential n crypto and the real value is hidden until it is being used for the technology that was developed. There are many projects out there that are being used daily servicing their clients needs and that is the start of much bigger things. I do believe many investors will end up with egg on their face by having selected certain crypto projects for no real reason due to lack of knowledge and understanding. Crypto is like a stock and at some point has to perform to justify the pricing.