Seriously, nobody has a clue what’s next.
And I’m not trying to sell you on any one cryptocurrency. In fact, I’m open minded. I’ve no problem at all, if you voice your opinion herein.
If you are like me, however, you’ve read and thought and read and invested…and scratched your noggin. Who can you believe? Is it too late to invest in crypto?
You know the answer. You can only trust you. Not Roger Ver, Eric Voorhees, Charlie Lee or Vitalik Buterin. Not Gavin Andresen or the Winklevoss Twins, but little old you.
“…the right time to come aboard…”
And for the record, I think that this space will continue to grow and that the right time to come aboard will be when you are damned well and ready.
You’ve waded though the articles, the graphs, experts and pumper-news. Then, as you sit there, sip your coffee and eat your bagel, sign onto your favored exchange or market, you make your trading decisions. And that’s that. It’s all about you, because there are no financial advisers in the new world. Even the professor types advise you to keep abreast of all the changes.
A turkey-shoot. You decide to gamble on bitcoin or hold as close as you can to a more traditional approach. Say Ripple XRP’s. Maybe a little EOS, spiced with some ADA (Cardano). A side of Ethereum perhaps.
Then you read more of the negative crud.
If you are a bank, you know you are losing when you must label the other guy as risky, however. That’s what JP Morgan-Chase and other threatened financial organizations are doing. It’s all part of a larger ploy (or plot, if you prefer) to stop the financial bleeding. But I could be way off the mark, right? Maybe the old guard won’t lose this round. What about the next one?
“…the final shakeout…”
Think about it. We could be witnessing the final shakeout in the cryptosphere. The next Amazon or eBay is right before our eyes, but we can’t see it. What’s more, the thing we are looking at can change how all of us save, spend, are taxed, and in the end, maybe even how free we will become. And you define the “we.”
Just how big could a cryptocurrency become, if it successfully replaces fiat currency altogether? If it simply adds to the mix? Now imagine that you own a piece of that pie. The right flavor of pie.
But let’s review. How is this new Bitcoin Bubble different than all the past bubbles? The Tulip, the Dot.com and so on? It’s not.
For one, cryptocurrency goes to the very core of the economic engine. The grease in the machine. Money. It’s being remade, right before our eyes and we are witnessing a sea change of magnificent and yet, peaceful proportions. A technology, by all appearances — an invention – that seems unstoppable.
That’s the line we are fed. The juggernaut is here! Open thy wallet! Be part of the crypto-saga.
Listen closely, do you hear the lonely winds? The howling of the vacant lot where you will keep your trailer, if you dare dump your life savings into cryptocurrency? There is no grand castle here. No amber waves of green. It’s you and bankruptcy.
“…sea of red.”
The sea of red. A confirmation of all the foolishness rides in. There is no one to blame, but yourself. It’s reality check time. Again. With bits of “pump-green.”
I’ve bitten those bullets more than once — and still profited. No, not with fancy options. Not with BTC loans. With study and more study. Similar to what one might do before a good game. Study the players. Study the coach. Who is the General Manager? What of the human element? Did the coach dump a good player and is the team facing that very same player now? (Revenge is a motivator.)
Bitcoin and clan tumbled from its highs. Few if any altcoins reverse that trend or if they do go against the tide of loss, they are mere pebbles bouncing along the bottom of the stream. Billions of dollars in value have changed hands. Early investors have unloaded and profited; and by the looks of things, they won’t be returning any time soon.
Or is that the “game plan?”
Add to that bad news, China’s recent moves to kill cryptocurrency in their country. And stop their citizens from trading cryptocurrency abroad. That’s a big hit. It is also a way to excise a cancer. China, after all, is not a free country by any standard. Removing a fickle financial partner will serve to stabilize the crypto-space in the freer countries.
The bad news just keeps on coming. Let’s face it. This whole space might go “poof.”
When the world got the first modern self-regulated substitute fiat monetary system, called bitcoin, it moved forward, however. It leaped forward. By any measure, it was and may still be, a technological-trust phenomenon for the ages. And humans need trust.
Bitcoin’s progeny? All the rest? The crypto-pack, if you will. They came to devour the bad money – to chase it out. And what a chase it has become. But will it survive?
The pot, however rusted and weak, then calls the new bitcoin kettle, black. The old guard bankers call bitcoin an irksome and annoying bubble.
How can an electronic fiat cryptocurrency ever hope to compete, much less replace, the singular corruption we have today? The devaluing government regulated fiat currency? Without the permission of governments themselves?
Kind of a conundrum, huh?
The banker’s soft gloves fit ever so snugly, over the bureaucrat’s fist, after all. And that is the primary problem today. We need to separate church and state, once again. Only, in this case, it’s the money and state we need to separate. Take the bankers soft gloves off, completely, and peacefully. For it is then, that we can focus on the naked fist of the apparatchik.
“…come home to roost.”
The past remarks from bankers, about cryptocurrency being a minor player, that its transaction volumes were minuscule by comparison, have now come home to roost. A once favored ridicule to comfort the sacred depositor and boost the ill-gotten gains of the fractional reserve inflation banking-gang, is gathering moss. The soft gloves are wearing thin. A horde of trust-technology, innovation-neophytes, are now squarely at odds with their nemesis: fiscal trust, i.e., cryptocurrency at large.
Cryptocurrency was a pastime, a fad, said the bankers saturated with the easy-print riches of government fiat. Essentially, those mongers of the viral-inflation, waited for cryptocurrency to stumble. And then, they attacked — again. A diminutive art of “financial” war, with the weapon of choice, the soft-gloved fist. Use of the fist, of course — the regulators — to tame the crypto-innovators.
It was not enough for the bankers to fire their bubble-gun news guns. We’ve heard endless tales of tulips and bitcoin. How bad it was. How bad it is. How bad it will be again.
And yet, some companies made it. Some weathered the storms of creative destruction, if I may borrow a term from Alan Greenspan, a man who once saw the merits of innovation, until he turned the old leaf over.
Among the wreckage of the Dot.com bubble were survivors. Amazon, eBay, Priceline.com and others. The trick is to see through the barrage of altcoins. To determine the potential winners, beforehand. No easy task.
There will be survivors of this new “Bitcoin Bubble,” as it will come to be known. Which altcoin will make it?
“…a risk to speculate…”
After citing the bubble concerns, the soft-gloved banker-warriors will attack the small crypto-supply lines first. The credit lines, attached directly to their banks. That is in play now, in the U.S. It is a risk to speculate and the banks certainly do not wish to retain such risk. That’s understandable. But weren’t we all waiting for such a move anyway? The slow and easy squeeze? Until we joke about innovation that once was?
Next in line? Debit purchases. No, I don’t think banks will tell you how to spend your money. I think the fist will do that, and the soft gloved bankers will comply, naturally. It’s a team effort. One hand covers the dirty fist.
At the same time the banks are pulling the fiscal plugs to innovation, they are investing in the blockchain technology, and we all know this. But they forget one important factor: humans. We are not so fooled.
Humans know that the current monetary system is fraught with corruption and inflationary disease. Humans know that the dollar was infected long ago and it’s only a matter of time until it crawls into the gutter, like a dying drug addict, and spends its last. The fact that banks want to use the crypto-technology (blockchain) to move the old government fiat around, is not a solution. The infection will still kill the patient, one banker/drug user at a time.
Cryptocurrency, save for certain types (Stellar Lumens for one) are not infected with the fiat devaluation virus. They are limited in numbers. Any bank that uses the blockchain to move government fiat, is pushing the very same inflation virus. Consume with caution. For there will come a time when governments inject massive amounts of the virus, claiming it is medicine. Banks will don the soft gloves then, until they are completely worn out. Then, as the façade banks are today, they will die. The People’s Banks — only in name — will rise. If we allow it.
Here’s the next bit of good news, however. And I’m not the first one to report it. There is a tide approaching. Articulate and savvy investors with billions of virus-infected dollars (fiat money), not here to create cryptocurrencies or to buy stock in companies that are innovating in this arena, are here instead, to buy cryptocurrencies in volume. And remember, once a dollar (or any fiat) has been exchanged for the right cryptocurrency, the inflation virus dies. The patient recovers.
You can see hints of it now.
In the past, as I watched the billions pour into the crypto-sphere, I saw that many altcoins had inverse relationships. One would tank and another soar. Others just stayed the course. There was no general direction.
Fast forward to now. Many cryptocurrencies move in tandem. Is this a sign of institutional money flowing in and out? A sea change? And, are the bankers – the financial houses holding the lion’s share of the money – concerned about the coming withdrawals from their care? Why hold regulated money at all, if liquid cryptocurrency is available. Stability, of course, is the answer. But this alleged characteristic of fiat is the last gasp of devaluing currency.
Again, in the past, many financial researchers warned that the tide of incoming cryptocurrency monies would wreak havoc when the new investors panicked and ordered their brokers to sell. Massive outflows and inflows were expected, and this seems to be the case today. A Las Vegas style game.
Has this fear been manufactured?
Think about it another way. If you are a few years from retirement and willing to risk $10,000 or more in the crypto-markets, knowing it might just help you survive in the coming years; and knowing that your government has issued fiat money and it is beginning to remind you of the Venezuelan bolivar, why not try?
On the other hand, if you are not comfortable with the wild swings in value of the cryptosphere, you should probably stick with metals. Gold. Silver. Copper. Lug them around.
There is a “third way” though. If you are looking for a way to test the waters. To own a semi-cryptocurrency and at the same time, still be connected to the past-money. You might want to investigate Ripple XRP’s. This might also open the door to more gutsy investments in raw cryptocurrencies. Currently, you can use XRP’s to trade for many other cryptocurrencies at a fraction of the cost the exchanges charge. (We are slowly heading into “no-brainer” territory here.)
Note: the above is not advice. Stick with your bank adviser for that. I’m certain they will steer you in the right and “official” dollar-denominated direction.