What is the Future of Crypto?

By future, I do not necessarily mean what will it do. I mean, what will its value be? Keep in mind that this commentary is only opinion and observation from a guy who likes money very much, and who has spent a lifetime investing in various other assets in order to obtain wealth.

So, what was my initial interest in cryptocurrency? Simply put, to make money. It is still primarily what interests me about it. To make money.

I know, I know. For many people that is not the purpose of cryptocurrency. Their view is that it can transform the world and how we interact in it, and especially how we conduct transactions in it.

I apologize in advance if my title seems to be click bait. It was not the intention, I assure you.

Ever since I got into this thing I have to tell you that there is one thing in particular that struck me. You see, when I think of crypto all I see is just another asset. To me, it is viewed as just another vehicle in order to make money from. The way I have looked at it is that it is not unlike the stock market, or real estate, or the bonds market.

Or is it? I am questioning that a little bit now the more I dive into my own research into the various coins out there. Because that is what people who are interested in making money do. We research what it is that we are investing in so that we understand fundamentally how we will eventually make money. We want to know what our return on investment is going to be, and how that return will be achieved.

It is not unlike when I invest in a business. I want to see the balance sheets. I want to know how much debt you are carrying. I want to know how you plan to make money. I want to know how you will separate your business from others in the same peer group.

In the crypto world many people refer to this as DYOR, or do your own research. In my world we call it doing your due diligence. They really are not different things fundamentally.

I said earlier that something struck me about cryptocurrency. I am an investor, and I have been one for a very long time. So, it is what I know. It is what I am familiar with. It is what I understand. It is how I view any asset class. And it is also how I generally view cryptocurrency.

As an investor. As someone who sees any of these things not materially, but simply as things to make me money. There is no emotion attached to any of the things that an investor invests in. There is passion. But that is not the same thing. When things no longer make an investor money, there is only one option.

Divesting.

An investor does not care about the thing. He only cares about his money. And the aim is to always preserve it, and especially to grow it.

What strikes me as I watch videos about cryptocurrency, and as I read comments on places like noise, and comments on crypto videos, and read articles on the subject, is that I do not necessarily see investors. What I see are enthusiasts.

So, in evaluating the future of cryptocurrency from an investor's perspective, one has to understand the value that enthusiasm can provide to the underlying "investment." Because that is part of the equation, isn't it?

Let me just say that enthusiasm is never truly absent even from an investor's perspective when making decisions about things to invest in. It's just that we see that enthusiasm in a different way, with a different goal or objective in mind. In other words, understanding the enthusiasm for something we are investing in can be a determining factor in what will bring value to our investment.

People really love coffee, and love a unique experience surrounding their coffee. Their enthusiasm for that experience has made Starbucks a very successful and profitable company. Their clients are almost a bit of a cult. For them it is not even really about the coffee itself. It's all about all the other things that makes them walk into a Starbuck's store willing to spend $5 on a cappuccino that they can likely make at home for 40 cents.

When you invest in a company like Starbucks, you aren't really investing in coffee. You are investing in enthusiasm.

So, with that perspective, the answer is yes. There is a value attached to enthusiasm, and that enthusiasm can potentially make an investment more profitable. That enthusiasm is something that give an investment legs.

Investors like investments with legs because it means their investment will make them more money. And again, being an investor, this is something I look for.

And other companies have similar enthusiasm attached to them. Cars can be an example. People have enthusiasm for brands like Ford and Chevy and Toyota. That enthusiasm ultimately translates into loyalty. And loyalty is a hard thing to break. Loyalty is also very profitable. And most enthusiasts tend to be loyal. So, it all just works to continue to add value.

Enthusiasts also add value to other things. Things people collect like stamps, or the cards of sports players, art collectors, antique car collectors and the list goes on. The future of the thing is determined by the enthusiasm of the person who has interest in it. The basis of the value is not determined necessarily by the thing's true value. It is based on the perceived value of the enthusiast.

So how does this all lead to cryptocurrency and what I perceive the future of cryptocurrency to be from the perspective of an investor and not an enthusiast? People believe in their coins. They have an affinity to the world that crypto offers that they want to live in. They have a closely connected bond with the idea of what crypto can become, and what it can offer to the world and to the common man. The enthusiasts are committed to it. They are emotionally attached to it. They have a loyalty to it.

All of these things provide value. And that value, for an investor, offers a return. But it also offers something else. Longevity.

Brands that capture enthusiasm and loyalty can last for many generations. And brands throughout the ages still exist today 100's of years after they first entered the marketplace. All of these brands enjoy more value today than they ever did, and continue to be valuable. And likely will continue to be valuable generations from now.

If what fuels the upward momentum of cryptocurrency now and beyond are people who are not interested necessarily in the return, but interested in the product and what it offers, who are interested in how it helps or changes their lives, or are interested in how it makes their lives more enjoyable and better—for an investor like me it says that the "investment" will provide a return. And not just a return. It will provide a massive one that will continue to provide even more returns. Life changing returns.

No matter what side of the "coin" you happen to be on. The investor side or the enthusiast side, there is only one logical conclusion to come to. And that is that the future of crypto looks to be extremely bright. And in the end no matter the aim, both the investor and the enthusiast will have a future in crypto that offers many rewards.

Whether it is love or money invested, the future of crypto is that it is here to stay.

Lead image courtesy of Pixabay, user TabimTabam. Cryptocurrency Crypto Bitcoin - Free image on Pixabay