Dear Cryptocurrency Investors,
It’s about the money.
Lost in the lull and the bull, the chart readers and the screaming heads; and the comedians and the click beggars, the FUDsters and FOMO-kings, sock-puppets, trolls, you name it…is the truth.
And the hell if I know it, but neither does anyone else.
You can see bits of the potential future of cryptocurrency all over the net in real-time, but not necessarily in “past” time. The encapsulated version of why we are where we are. The rooting of the space, if you will.
Profits speak louder than purists, however and that answer lays ahead. Predictions that bitcoin will soar into the millions of dollars, seems to go beyond boundaries of common sense. We should not allow profiteers to reach into our collective pockets, as they sell into our greed.
Charlie Lee, who did not divulge the numbers of Litecoins he allegedy sold recently, did so for a reason and if you noticed, near the peak in price. That action speaks volumes, no matter the reasons he might give to the contrary. Even if Litecoin becomes the most popular cryptocurrency, the doubt will linger in the minds of investors.
And this doubt also injects its worry into bitcoin.
What is Charlie seeing that we do not?
If you haven’t made 25% to 50% returns this year (2017) then, I’d be surprised. Many have made far more than that…
What will happen in 2018?
In 2018, we could see a reversal trend. From bitcoin to Ripple. It seems to be on its way now, but this space is notorious for pumps and dumps and even I doubt Ripple XRP’s will climb to $10 each, as some have suggested, by mid-2018.
The cryptocurrencies we have come to rely upon are taking hit after hit and they have not recuperated as of this writing. Many investors are paying an emotional cost, having bought in late. The faith that bitcoin has always recovered, is currently being retested.
What are a few weeks of losses, you say, as bitcoin works out its kinks?
…gamble a little…
These last few weeks of 2017 will embitter some of the newest investors, that’s why. The ones who have been watching and trying to understand and who have, after a time, decided to gamble a little. These are the retirees as well as the professionals, but not necessarily expert investors. They are conservative types and once burned, they may never return. These last few weeks have burned them. And they have lots of money to invest.
After the Thanksgiving chats, they went in. Thousands, if not billions of dollars. And what happened? They were cut off at the knees. Profit takers swept in. Exchanges could not handle the inflow. Bitcoin showed its flaws.
Ripple held the doors open, but few of the newest investors knew how to buy Ripple XRP’s. So, the late comers served to enrich the first comers…not unlike any good Ponzi Scheme, with the exception that the bitcoin scheme seems perpetual. It still has billions left…for now.
Already, I have spoken to those who, in the last few weeks invested thousands in cryptocurrencies and have already cashed out, with losses. This was after I had shown them what they could have made had they listened to me over the last five years.
They were astounded then, but not now? Now they shake their heads at me. Not only do they tell me that they think that bitcoin will crash, because they have seen this sort of thing before and names like Ripple, reminds them of cheap wine.
“Cheap wine?” I ask. “The name bothers you?”
They say it does.
Personally, I can understand that. “Ripple is not a great name, but look at the returns,” I tell them.
“Doesn’t matter,” they say. “We got burned on bitcoin, Ethereum and Litecoin, what the hell difference does it make? They are all the same.”
“Ripple has its pluses,” I tell them. “It’s doubled in value as others have sunk. Ethereum has a lot of pluses as well, but…”
“Just you wait,” they said. “The government is going to shut them all down.”
“Not Ripple,” I said. “It’s playing along with the regulators. It services the banks and now credit card companies and more good news is coming.”
“What about Dragoncoin,” one asked.
“Dragon what?” I replied.
“How about Raiblocks?” another asked.
“It’s too new — risky,” I replied.
“It’s got better tech than bitcoin,” came the rejoinder.
“Okay, but Iota said the same thing and they are struggling. Each coin argues with the other. The test for me has always been “use cases.” And bitcoin used to be used more, now Litecoin seems to be taking up some of the slack,” I said. “And Ripple…”
“Cheap wine?” one replied.
“Never mind,” I said.
Bought gold and silver…
So I wait, but for now, as these old investors have retraced their steps. Bought gold and silver and palladium. Dumped stocks and bonds, like they’re on fire. One was just ripped off when he failed to check out a gold dealer to see if they were legit.
And these conservative types, these investors who have accumulated wealth the hard way, do not like to lose a single dime. Time is far too precious now. I know, because I am one of them — we’ll almost.
This dip in bitcoin price, even if it recovers tomorrow, will, like Charlie Lee’s recent Litecoin cash-out, linger like rotten cheese. It’s like that fake gold dealer where one guy lost thousands dollars last month.
I asked that guy how he lost that money. He said he found the gold guy on the internet and sent him the money from his IRA and that was that. Didn’t check him out because he “trusted” the internet. Didn’t even tell his financial planner he was doing it, because he wanted to save on fees. He trusted that his internet service provider would not allow fake gold dealers to advertise via email. And it was easy to do, he said.
It’s a knowledge gap. In years past, it was nearly impossible to send official looking mail to someone for free. If you received a chain letter of scam bank notice, you were not often fooled. Phone call scams were easier and they still are, but they are labor intensive. Since criminals are naturally lazy, they want the biggest bang for limited effort. Welcome to scam websites and emails. Welcome to webpage Monero miners.
There are legit cryptocurrency sites, however. Coinbase for one.
Now, here’s the thing. For these conservative money types, Coinbase’s newest web page look and feel sucks. Right there, they are losing millions of dollars in business. Why? Why would they intentionally allow their coders and website gurus make the site counterproductive? Counter-intuitive?
I recently sat down with several businessman, some retired folks, a Human Resources Specialist and a two company presidents. I showed them the Coinbase website, which has gone through several alterations over the years. This newest version, I’ll wager, has probably influenced the latest bitcoin losses. Why?
Navigation across the platform is slow and confusing, they said. For example, a lot of the web pages have various tabs you may click on, but no highlighting or help capsule to let you know they even exist. Bad business all the way around.
“And look at this,” one said. “Each tab on the left, Bitcoin, Bitcoin Cash etc., you click on them, the word, and then to the right you see all of your transactions. Why do the jam it all in like that, like those credit card websites now?”
I couldn’t understand why Coinbase would do that. “It was not like that before, but it was not great before either,” I said. I just got the glazed-eye look then.
“Can I just call them?” It was a elderly woman.
“I’m sure you can,” I said.
“Have you ever called them?” she asked then.
“No. I do everything online now.”
I hadn’t been on the Coinbase website for a while and it took me, without reading too many directions, about 30 minutes to see how they had changed it. How did I do this? I started clicking every damned word on the page and behold, it all came together. But newbies and oldies should not be turned off like this. It is clear that the age and knowledge gap is hurting their business.
But seriously, Coinbase, get your heads of out of the sky for a moment and hire some people who understand how to make things idiot-proof. Take a lesson from Amazon or Paypal, but get it together. That is, if you do not want to see competition scream right past you.
But just another short look into future seems to show me that soon, you won’t be able to buy cryptocurrency without a broker. And those of us holding, in the US, will be required to report and then turn over those holdings to licensed crypto-managers. A Cryptocurrency Specialist at your local bank or money house.
Wouldn’t that be just peachy?