Crypto – Is it here to stay

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Crypto – is it here to stay or it is just a craze of the moment?

 

Crypto – Is it here to stay

Depending on whom you ask this question, you’ll get the answers:

YES – this is just a beginning of it, and soon Crypto coins will be only currency in use

NO – this is just another pyramid scheme, and soon everyone will have a rude awakening

Maybe – it might be considered as an alternative Investment, with a high risk

And so on…

 

I am involved in Global markets for over 40 years, and a professional specialized in Forex for more then 30…

So you might call me a Dinosaur of the markets, but I am constantly evolving, learning and applying everything new that comes my way.

Now knowing the new generations and their ways of thinking let me share with you what Google says:

7 Common Types of Investments

• Now, let’s start with stocks: the most popular form of investment
• Mutual Funds
• Real Estate
• Fixed Deposits (FDS)
• Recurring Deposits (RDS)

 

Nothing about Crypto…

 

As long as wide public doesn’t accept Crypto as a real Investment, it is questionable where it will all go next.

Another problem is that we are seeing daily birth of the new ones…Meme Coins.

But do you know the difference??

Meme coins are digital currencies inspired by literal memes or other cultural phenomena. Meme coins typically use standard blockchain protocols, but unlike cryptocurrencies such as Bitcoin and Ethereum, they don’t have any serious financial or technological purpose.

Now when we have cleared this, let us position Crypto “Currencies” where they really belong.

You can call them “currency” all you want, but they do not really belong to that sector…you can take shells from the beach and call them currency, and even live that dream – at the end you might end up owning most of them and no one would like to give you anything in exchange….

The closest to Crypto is Gold – a metal that acts as a safe haven and a currency of choice even between Nations / Countries

But ( a big BUT ) there are very limited ( final ) resources when it comes to Gold and well known expenses for extracting it…

So in my opinion Crypto is something between a Commodity, Investment vehicle and a Dream….

And NO – I am not anti Crypto – on contrary – I like the idea of alternative to Government’s based promises ( whoever brings this paper will be paid out in gold…) as there is no such a promise no more …

So what is the future???

Well, for Crypto to succeed and get its natural place, there are steps to be taken.

First of all you have to be aware that as long as any Coin depends on some number of wealthy individuals ( Whales ) to hold on them, there is a huge danger lurking behind it.

We can never know what is the moment when they’ll drop it and leave us with worthless digital data…

Interest for owning Crypto Coins must be massive and wide.

Once it can be established, we come to the issue of price – like BTC – Bitcoin – who can afford one at this moment ??

Corporations have been solving this issue from the early beginnings , doing Split every now and then…

Split:  A stock split is a decision by a company’s board to increase the number of outstanding shares in the company by issuing new shares to existing shareholders in a set proportion. Stock splits come in multiple forms, but the most common are 2-for-1, 3-for-2 or 3-for-1 splits.

In case of Bitcoin we are a bit late already…accommodating Split would be more like 10.000 for 1.

Now I am not one that is privy to insides of Blockchain  technology, how it all works and who makes decisions ( if anyone ) , so I have no clue is it even possible to talk about something like Split when it comes to Crypto, but it is something that would assure its future.

Possibility for wide masses to own Coins and hold on them is the direct rode to security,

This way we would not have tremendous pull backs – like 50% or even more, and stability would bring the reality in Crypto World.

So safety is in numbers.

Thinking of Crypto as a safe heaven is way out of reality.

What is The Safe Haven when it comes to Investment :

Safe haven investments are assets that are expected to maintain or increase in value during times of economic uncertainty or market turbulence. These assets can help investors limit their exposure to losses during market downturns. Some common examples include gold, government bonds, and certain currencies like the US dollar or Swiss franc. 

But what is a real Safe Haven?

In my opinion there is none aside of Gold, and even that only up to the point – as long as some kind of civilization exists

Just imagine if shit really hits the fan:

No electricity – no digital assets, data…internet..name it – forget about mobile phones as well.

But we’ll leave those dooms day speculations aside.

For Crypto to walk side by side with established currencies it is of utmost importance to provide Security and a possibility to be held in hand – not in some Crypto Wallet…

Also, we have to know some borders – from / to and not to rely only on wide market feelings and impulsive decisions of handful of Whales…

We also need something like “Official” exchange where the rules will be written and obeyed by all .

There are so many smaller details needed to be implemented for Crypto to be taken way more seriously, but what we are facing right now in terms of some Governments influence is making me puke.

In case Governments take over, we would have same thing – their promise – exactly what we want to avoid using Crypto.

So, bottom line – Crypto has to continue evolving and look for its own place in all of the things.

Only then we’ll have it around if not forever, then for quite some time to come.

 

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