PSA: Stop calling cryptocurrencies "stocks"

Plain and simple, cryptocurrencies are not--and never will be--stocks. Unlike stocks, buying cryptocurrencies does not mean you are a "shareholder" or own any part of that project. You are simply an investor who owns a currency. Currencies are used as means of exchange; stocks--while bought and sold on a market like cryptocurrencies--are not. While both investment vehicles, cryptocurrencies and stocks serve two entirely different sets of purposes. Let's break down the barriers and stop referring to crypto in stock terms. ☺

The following article provides an interesting commentary on this subject:

"Investing in stock drives the production of better goods and services, but currency isn’t a commodity which will depreciate due to the nature of its own decay. It’s not a service which could lose its public appeal in a few years. Intellectual property is a closer metaphor, but a dollar will still never hold intrinsic value, ironically, unless it is one day viewed as an antique."


The parallel between stocks and cryptocurrencies is oddly emphasized by cryptocurrency promoters, in their reference to what they call "market capitalization," a number derived by multiplying the number of tokens in circulation by its current selling price. It's easy to find the current market cap of all cryptocurrencies. Market cap is a familiar concept from stock investing, not currencies. But the familiar idea of market cap in stocks has a definitive purpose: it's a rough measure of the size of a company versus other companies. The S&P 500 is an index of the 500 largest publicly-traded companies when sorted by market cap.

Cryptocurrency trading market is 24x7, unlike stocks and forex which happens for some limited duration of the day. Hence cryptocurrency trading is more volatile