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I am always trying to learn new things and that goes for my investing strategy. I came across some information that may change the way I look at coins.
When I looked at a coin, I would see if they had a usable and working product. Most coins do not have a working product, so if one did I thought of it as a great thing.
Now I am not so sure.
The crypto market is very young. Most of the investments being made are on speculation and hope. We are speculating that what they are trying to build will be good and hoping that it succeeds.
This speculation and hope can drive up price. People love hope, myself included.
When looking at something that is just an idea it is extremely difficult to put a value on it. For example, when the Apple was just an idea could you have guessed the value to be $900 billion.
If you were able to do this, then you are probably the richest person in the world.
Now look at something that has a working product. You can see how many users it has, how much is being bought, ect. You can put an actual value on it much easier.
By being able to value something, you know how much it is worth. It gives investors an idea of what a coin should cost. This could cause the price per coin to not rise as high or as fast as something that does not have a value attached.
So going forward I do not think I will pay too much attention to if something has a usable product. I might look closer at just their idea.
