What to avoid in 2022: Cryptocurrency, NFTs and Blockchain

Cryptocurrency The growing craze for cryptocurrencies has been luring investors. Cryptocurrencies refer to a category of supposedly 'digital' currencies that try to provide an alternative to the existing government- controlled money. Unprecedented transactional convenience (including international payments), freedom from government supervision, absolute anonymity and most importantly, its track record of high returns are driving the demand for cryptocurrencies. According to PitchBook Data Inc, VC funds invested about $30 billion in the crypto theme in 2021, which is more than the total investments made in all previous years. But as long-term readers of Value Research probably know by now, investors are better off avoiding this fad altogether. An asset is something that is inherently valuable, for example, stocks (they entitle investors to a share in the underlying profit). But when it comes to cryptocurrencies, there is no such feature. Besides, the absence of any underlying value, unrecognised legal status and factors like extreme volatility, the possibility of it being lost/ stolen forever or hacked easily and the risk of it being outlawed by the gove