Is Crypto the Next Lotto?

A lottery is a form of gambling that involves the drawing of numbers at random for a prize. Lotteries only work when many people contribute money to the lottery—the more, the better. Hypothetically speaking, what would happen to a Powerball lottery where corporations, hedge funds, and speculators around the world dump tens of billions into it? That hypothetical scenario loosely describes cryptocurrency.While there are some differences between investing in a lottery and investing in cryptocurrency, the underlying principle is the same—the more money contributed to the pot, the more it is worth. To make money in cryptocurrency, you need to buy in and hope that more people contribute money into the pool to make your investment worth more.Cryptocurrency investors should ask themselves: What would happen to crypto’s value if everyone withdrew their investment today? Or if all governments were to declare it illegal simultaneously? If these questions are honestly answered, you will find that the intrinsic value of cryptocurrency is $0—that is because the value of its underlying code is worth about as much as the individual characters of this article.Don’t get me wrong; I believe that blockchain is a brilliant technology that will upend the way we transact in the future. However, the fact that blockchain is connected with cryptocurrency does not create intrinsic value.If you are thinking about making a cryptocurrency investment, I recommend first making sure that it aligns with your financial plan.