Is it possible…to invest in a cryptocurrency that is acceptable to governments, banks, investment houses and privacy seeking individuals? Not necessarily for the “purity” of the coin, but its potential to grow and thereby earn a profit for the average investor?
What I mean by “purity” is the desire by many for a cryptocurrency to be decentralized, subvert all government controls, be public (or private), and have nothing to do with banking. The farther the crypto is from what is seen by many as corporate corruption, the better.
But can we meet them halfway — and profit? Isn’t that the game plan? Or is this a “take-over-the-world plot?”
Let’s face it, decentralization and the acceptance of that philosophy are two different worlds. We should live in the real one, not the fantasy digital matrix.
So, what is the reality? Is it: “join them, then beat them?”
Let’s judge by the current lay of the land. There are enemies at the gates. One cannot ignore this fact.
No doubt many have read and continue to read about cryptocurrencies. Bitcoin, Litecoin, Ethereum and clan. Good news and bad. Bubbles and troubles.
Here’s the recent news…
There are reports that China will essentially make all cryptocurrencies illegal by October of 2017. Large Cryptocurrency exchanges are reportedly reaching out to non-Chinese based businesses to circumvent these new capital controls. There is uncertainty in the crypto-markets as to how bitcoin will ride this out.
India may adopt a national cryptocurrency called ‘Lakshmi.’ The implication here is that the government there does not trust bitcoin. The tax authorities are concerned about money laundering, according to reports. This should also be a warning to Bytecoin users in India.
If you can’t beat them, copy the tech and take it over?
The European Commission is concerned about cybercrimes and cryptocurrencies. Regulation is sought. This implies, not a rejection of such currencies, but their tacit adoption or at least it’s a delaying tactic.
Russia – Leningrad Region – cryptocurrency ‘miners’ are being invited to the Leningrad region to create large industrial scale facilities. Cheap power is a selling point. The effort seems to have long legs, reaching to Moscow. Do you think they want a piece of the action?
On the downside, Bloomberg reports that Bitcoin might split again because the developers are in disagreement. Added risk for investors. More uncertainty.
John MacAfee announced that Pandora’s box has been opened. Government control over money is eroding. The reaction has been one of regulation in the US and in China, reportedly, Cryptocurrency executives have not been allowed to leave the country.
Ray Dalio, Hedge Fund Manager, has voiced his opinion: Bitcoin is a bubble.
Rainer Michael Preiss (Wealth Advisor) indicated that banks are likely afraid of bitcoin.
Is there a double-standard, however? As this article reports, the recent outspoken critics of bitcoin may in fact work for companies that actually invest in it.
Okay. So, what does all this mean?
Certainly, one cannot predict the future; however, behind the battle lines one can make some critical observations and ask the hard questions.
First, we must ask ourselves why are the most powerful financial houses on earth just now beginning to draw a line in the proverbial sand? Is it the pressure from the banking industry in general, as they watch the outflow of monies into crypto? Fear of losing profits?
Second, is it the threat to the social order via the potential bankruptcy of governments, by way of a dying banking empire? In other words, why do we need a banking empire at all if governments could essentially finance the economies of the world with a blockchain, directly? Surely, if this occurred, the governments would appoint large dominant information tech industries to head the effort. Can you think of a few?
Third, efforts are being made by the old guard (banks and investment houses) to both invest in cryptocurrencies and educate themselves in their use. These old guard types do not apparently like the fact that bitcoin is so public and many privacy-seeking individuals feel the same way.
Profit from their Greed?
Based upon these observations, we may be able to judge where the old guard might go. Where they might pour billions of dollars, making the rise of bitcoin appear as a blip on the screen of crypto.
If we could figure that out, determine where the vast sums of money sitting in retirement accounts and hedge funds might flow, could we then profit from them?
Or are we off the mark again? Will the banking industry utilize inhouse blockchains or will they contract out? My bet? They will contract out.
For some of us it will be difficult to let go of bitcoin. It has a cult-like following. Many will retain a few BTC’s even after a crash, on the outside chance of a resurgence. There is always a chance it can be fixed. After all, it has staying power.
So, what do privacy-seeking individuals and banks require when using money? Let’s just suppose for a moment, that the money is a cryptocurrency?
Well, individuals don’t want their account balances made public. They don’t necessarily want you to know where they spend and how much. So, let’s make privacy optional.
Banks are the same way. They wish to keep your balances between you and them – and regulatory agencies.
What’s the problem? Few if any cryptocurrencies are geared this way. They are most often, completely open to public inspection. Anyone, including criminals, could potentially find your money.
How about customer service? Name one cryptocurrency that you can call 24/7 and discuss a funds transfer or a lost deposit. If you have named one, congratulations.
Now, can you name a private/public blockchain with world class developers, a business plan, open source software, that is liked by the old guard and crypto-fans alike? An actual regulated and above-board company?
If you said Ripple, that’s not on the mark.
I want to profit from a crypto-coin that has few coins, relatively speaking, when compared to bitcoin, and good volume. Over 10 million dollars a day.
I would like a cryptocurrency that the old guard – remember them – is curious about.
I don’t want an ICO coin and I am not thrilled about pre-mines, but a shared tax to help support the coin would not put me off.
The newest and best tech is a must. A step ahead of bitcoin with the ability to add fast updates, if needed.
A staff of developers who are motivated by rewards, i.e., money, to continue to support the coin for as long as it remains successful.
Can you name this coin?
I think I might have a clue.
And it’s not Monero, Aeon or Bytecoin either.
Not NavCoin or Dash.
But it is listed in the top twenty here.
No, not NEM or Iota.
Please leave any comments below.
Note: this should not be considered investment advise.
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