Elon Musk can shake things up, with just a tweet. You must have seen the recent doge-mania his tweets have created in the crypto space. On May 12, he had a change of heart when he tweeted about Tesla suspending vehicle purchases using the Bitcoin.
Is crypto investing a bubble or are there fundamental reasons behind it? And should you be investing in crypto in the first place?
A highly volatile asset as a currency?
We need to appreciate the fact that this is unlike other asset classes that are already established, verified and trusted by people. And we may need to start thinking about calling it an asset than a currency. Or, better still, crypto currency can be called a commodity, just as gold and silver are.
But can you trade your gold or silver coins to buy, say a laptop? No, you can’t, because they are not legal tender. Similarly, Bitcoin may or may not become a currency, but may remain an asset. Only time will tell. But in the meantime,
just as gold and silver prices rise or fall, a cryptocurrency’s price will also gyrate and will be tracked. What gold used