At Least With Stocks, There’s a Company That Makes or Does Things. What Does Crypto Have That Gives It Value?

Ok. So you want to go down this rabbit hole, eh? LFG. 

Cryptocurrencies derive their value from a mix of supply and demand, speculative interest, and the tech behind them. Does that sound familiar? It should. It’s pretty similar to what drives stocks.

Let’s start with supply and demand: just like those limited-edition sneakers you once missed out on, most cryptocurrencies have a limited supply, so as more people want what’s limited, the value goes up. Simple economics. 

Then there’s the speculative side; people buy into the hype, hoping they’ll strike it rich, driving up demand. If something is gaining value and people think it’s overhyped, they’ll open a short position, betting that the price will drop.

The underlying tech, blockchain — gets nerds all hot and bothered for a good reason. It’s decentralized, meaning no single entity calls the shots, which feels liberating for those tired of traditional banking systems. 

Plus, it’s super secure, ensuring each transaction is legit and tamperproof. 

Finally, adoption plays a part. Believe it or not, more businesses are opening their registers to crypto, offering it a foothold in the real world. 

While it might sound like a strange brew of hype and tech magic, the value of crypto is as much about embracing a new frontier as it is about numbers on a screen.