The meteoric rise of bitcoin, and its offspring, has been fascinating and confusing. The greater fool theory states that the price of an object is not determined by its intrinsic value but rather the irrational beliefs and expectations of market participants.

There is not a fundamental way to value bitcoin and any assertion to do so is absurd. Bitcoin produces nothing except the assumption that it can be sold to someone later at a greater price. Certainly, the First Movers in the cryptocurrency market have become millionaires. The First Movers had a steady stream of market participants that apparently could afford to lose everything on a roll of the dice. When the dice turn cold, and they do, and the market participants realize that there is no intrinsic value -- It will be like watching The Devils Advocate, a great movie with a horrible ending.

Its far easier buy great companies or assets, that produce stable earnings that deliver a return on investment. A bird in the hand is still worth two in a bush.