Cryptocurrencies are governed by different economic realities, have different market structures and have different return characteristics. They are simply too varied to be aggregated into one asset class, according to the expert view published on coindesk.com.
“Simply using ‘crypto’ to describe all of the tokens above despite their respective incentive structures is mental shorthand — a mental “map” to navigate the space, which doesn’t accurately reflect the “territory,” publication claims.
Diversification must be done more intelligently than buying a bunch of crypto assets and crossing your fingers — investors need a “map” with finer detail to navigate the “territory.
Investors can be easily misled into believing they are investing in bitcoin’s uncensorable money thesis or Ethereum’s decentralized computing thesis when in reality they are simply buying startup stock or local real estate.