If your friend keeps his Bitcoin in your cold wallet, and you refuse to return it to him, he certainly goes to the police and makes a legal case against you because everyone knows the value of Bitcoin. But what happens when your friend sends thousands of meme coins, and you never return to him? In people’s minds, Bitcoin and Ethereum have the global consensus of being valuable assets, and other cryptocurrencies are not considered assets.
How do you know why coins have value or not? If you still believe that the value is based on the people’s approvals, then you still do not understand. For example, if you purchase the Bored Ape NFT and try to sell it on Facebook, few people are interested, and a few are not interested. Those people who do not show interest in your NFT are not wrong because they do not care about the NFT. But those people who want these NFTs are ready to pay the price. Now, we understand there are two types of people: one is those who want it, and the other is those who don’t want it.
As long as something is available and limited and many people want it, it means it has an investment value, no matter what the type of thing is, ugly or beautiful. The real essence of investment value is based on the people’s demand to buy from you at a higher price. As long as many people have demand for it, you can consider those objects to have value. It doesn’t matter how many people reject your idea; even Buffet makes a live broadcast to indicate this object has no future value, but demand makes it worthwhile for investment.
The meme coins and NFTs are fulfilling the needs for spiritual consumption. These assets have no means in our digital world other than identity recognition, and nothing else. Similar to the parcel passing game, if you have it, you can sit on the chair; otherwise, you are out of the game. If you belong to people who think that only the material needs of people are worth attention, then you belong to poor people who never understand that rich people are willing to pay a high price for spiritual consumption and emotional experience. If you think that I am wrong, then justify the luxury goods needs. You can’t impose your logic to infer other people’s needs, even if it is the false need.
In our beautiful world, the rich people spread everywhere. It’s your opportunity to collect such resources that rich people are willing to pay more for spiritual experience and a feeling of luxury. And you do not require that other people consider those assets worthy and valuable. Every meme coin is considered zero because few people are interested in them, and if the coin plunges 99%, it means the consensus has lasted for a short period. This truth is behind the meme coin value dilemma.
Another factor that impacts the meme coin, It has no business needs and is never utilized in the economy; it has only the narrative. If the narrative is stable and attracts people in the future, it is worth attention and investment.
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