Crypto is either the world’s best idea that hasn’t yet found its niche or an algorithm for printing lottery tickets.
Either way, it has made some people very rich in recent years. As a result, it has increasingly moved from the province of tech-oriented investors to the mainstream market.
“Crypto is making its way more and more over into stock land,” Timothy Collins wrote recently on Real Money. “Facebook is now Meta. Coinbase (COIN) is expanding into more coins and NFTs. Bitcoin now lives in ETFs. Roblox (RBLX) – Get Roblox Corp. Class A Report continues to show us the gaming space with an idea of ownership within games has merits. Disney DIS, McDonald’s MCD, and other blue chips have thrown their hat in the ring. Headlines about the three or four metaverse or NFT stocks to own are becoming common place. At some point, even traditionalists will have to ease off the ‘Beanie Babies’ argument.”
The Beanie Babies argument suggests that crypto is an overvalued collectible, like baseball cards and comic books. The counterargument is that the proliferation of blockchain-based products indicates a truly innovative technology still finding its footing in the market.
In other words, one side of the debate suggests that this is just a trading market, in which prices rise without creating underlying value. The other side argues that investing in crypto means investing in future value, which will become realized when companies use this technology to roll out products and utilities for the market at large.
For investors who believe that cryptocurrency is a future-forward investment, Collins writes, it’s time to start looking more seriously at ethereum. This asset doesn’t have the brand name of bitcoin, but it does offer a potentially more serious product.
“I’ve seen and heard folks talk about Ethereum flipping Bitcoin. That would mean the price of Ethereum rising above Bitcoin’s. Impossible? No, but a tall task none-the-less. That being said, Ethereum is one of the places I see the most action. Bitcoin really doesn’t have a role in NFT creation or trading. It doesn’t have much, if any, role in NFT gaming. It doesn’t touch much in the alt coin space. Ethereum is used in all of these areas.”