https://www.google.com/finance/quote/BTC-USD?window=1M
https://coinmarketcap.com/currencies/ethereum/
Former US President Donald Trump: Crypto Is A Disaster Waiting To Happen
I have a libtard coworker who has sank a lot money in to this ponzi scheme, I tried to warn him over a year ago. I told him Trump doesn't like crypto, take my advice and get out now, he didn't listen to me. I have a couple other libtard coworkers who voted for Biden, they won't even look me in the eye these days.
It's similar to the stock market where the prices are mostly determined by speculation of future results. In this case, crypto prices are based on speculation of future adoption.
Not really, the closest analog is an IPO where the more investments the higher the price surges. Outside of that, a massive investment might increase a price, but less so because the company has an inherent value (machines, buildings, whatever).
The bottom line is that cryptos maintain a price because more people are dabbling, however, if there was ever a run on cryptos, the price would hit zero with plenty of people still holding the bag.
DWAC is a good comparison that many people here can relate to. It has no product yet, priced only on speculation. It's also been extremely volatile. It has the chance to not come out with a viable product and crash to zero. And it also has a chance to come out with a great product that gets adopted by the masses in the future.
The early investors who were willing to take the risk on a company they believed will make a lot of money if DWAC comes out with a product people use. And the early investors will lose money if the product never gets released or fails to meet expectations.
Or it's like buying Tesla stock in 2010. They released a car, had a product, but it was a small niche in 2010. If you saw the potential you could have taken the risk in 2010 and made a boat load of money today. You could have invested in it's early adoption in 2011, 2012, all the way to 2019 and then BAM, 2020, the price goes off.
With crypto, we are in still in the early adoption phase and nobody knows where it will go, just like Tesla in 2003 when the company formed. All the way to 2008 when they released their first car. It's a speculative risk to invest. Some cryptos will fail, and some will have widespread adoption.