Paper dollar bills worth in the range of $2-3 million. No purpose to them except aesthetics or impressing your friends with your taste in “finer” things. If you are looking for irrational exuberance, you will find it in auctions where old stuff is sold.
Dumping $2-3m on something fragile and pretty useless such as old money is perhaps the most insane thing I have heard.
I know, I know… people attach sentimental value to these “rare” pieces of history, but I don’t think they are really worth that much.
Now compare that to Cardano—something with actual utility and it’s future potential.
These are collectibles. I don’t think buyers care about utility and potential. Picasso’s paintings or old manuscripts don’t have much of that either but they sell for insane money. When you are rich you often want to possess something most people can’t.
I can bet with you that even the rich buy these as an investment hoping the next guy would want to pay much more for them. Heck there are investment strategies that incorporate buying alternative assets like these… so no, it isn’t only for the show.
There is an inherent expectation that their value will increase or at least won’t go down significantly. They are hard to maintain (you have to keep these assets at certain temperature, humidity etc… ) often you don’t keep them at your premises but at a museum where you pay a hefty maintenance fee.
This creates a lot of risks: loss, theft, forgery… so the “smarter” rich people insure against all these outcomes, again paying hefty sums of money. I could go on but it’s easier to summarize this whole thing as insanity.
Naaaah everyone can buy ADA with $0.05 what so special? I buy ADA btw. But lately I’m thinking what will makes ADA special n worth?? Gold worth because it can be used in electronics. Dollar can buy some food. ADA what can be used?
Ada can be used to buy a ticket at the IOHK summit for a great discount
These questions are probably the first thing you should ask yourself before putting money behind a project, no? Value is subjective, so you need to figure out for yourself if there’s value behind this and whether people will deem it valuable as well.
Clearly those of us here primarily already envision a future where Cardano is used on the daily by millions, so we don’t get caught up in the brush so to speak.
Viewed within a context of a diversified portfolio, these strategies make sense… there are three important components to portfolio management: 1. Returns and 2. Risk and 3. Correlations.
Alternative strategies such as paintings, commodities, hedge funds sometimes are bundled together because of their low correlation to traditional markets (debt, equity).
I’d put crypto in that same last bucket, but with less fees and better potential upside.
at this point not…maybe some day…