1 Reason Bitcoin Still Looks Overvalued

Like a number of growth stocks, Bitcoin (CRYPTO: BTC) has crashed hard this year. The largest cryptocurrency is down more than 50% from its peak last fall as investors have moved away from risk assets and Bitcoin has failed to live up to its reputation as an inflation hedge.

While some investors seem to believe that the cryptocurrency is cheap after falling so far from its previous peak, that argument seems suspect when taking a closer look. There's no easy way to value Bitcoin, after all.

As a cryptocurrency, the asset doesn't have any of the fundamentals that investors typically use to value productive assets like stocks, bonds, or real estate. Over its history, Bitcoin has moved more like a speculative asset, such as a penny stock, with large swings up and down. Even today, much of the value behind it seems speculative.

Source Fool.com