Everyone knows I’m into tech, and either keep asking me for investment advice or worse, giving me some! When did geeks become investment bankers? No, you don’t know anything about cryptocurrencies. Yes you, I mean you… the person who read a few articles online about Bitcoin and Blockchain and now want to give everyone sagely advice. Just shut up already!
Yes, I realise you claim to have made some money off Bitcoin, or some altcoin or the other, and it was probably a few dollars, or maybe a hundred, but I could randomly bet on the horse races and achieve the same result. So go ahead, throw your own money at it, and stop showing off or trying to get me to drown my hard earned money in a Ponzi scheme. Remember Bitconnect? The scammers who claimed to offer a “beginner’s guide” to cryptocurrencies, and also offered you sure bets, and investment opportunities… until they got shut down recently and thousands had lost a lot of money by falling into their trap? In May last year, the police came down hard on the promoters of OneCoin, a fraudulent cryptocurrency that had attracted “investors” in India. I’ll repeat myself for effect – Ponzi scheme!
Most people, including the self-proclaimed experts, know nothing about the cryptocurrency bandwagon they’ve leapt on to with such gusto. The people who know how it works are the billionaires who are keeping their mouths shut and letting you idiots throw money their way. It’s like the stock markets, really, where few, if any, rich people ever become poor, but middle-class idiot dreamers with getting rich quick ideas often lose everything they have in the long run. And that’s the problem, it’s a long, long run, and none of us has the money to participate for that long, and we didn’t have the money or foresight to get on the elevator at the ground floor!
Because we see Bitcoin soar overnight, we think it’s a good idea to invest, but what goes up fast crashes immediately, and it’s already happening and will get worse still. Of course, there will be volatility because it’s a double-edged sword. You can make money in an instant, and lose it in half that time. It’s like gambling in a casino. Even when you win big, it’s nothing compared to how much the casino won!
Bitcoin may be alive as an investment vehicle, but it’s dead as a cryptocurrency. It is not as anonymous as it appears, and small value, regular transactions take a long time to spread across the blockchain. The little guy gets the short end again! There are newer cryptocurrencies that actually address many of these shortcomings, including Ripple or Monero, but hang on, read some more before you run off to burn that money!
The get rich quick bunch are going to be disappointed in them. Which also means that there’s less money in it, and it is a popularity contest, never forget that. You’re not only trying to predict which altcoin will give you rewards, you’re also trying to figure out which will survive.
People make the mistake of thinking that cryptocurrencies not having a middleman is a good thing. If you were selling your phone for 10k, and someone came and offered you an IOU note for it, what would you say? By cutting out the middleman, like say, a bank, you’re not just cutting out the transaction fee, but also the regulatory authority. There’s no way something like Bitcoin would get the official go-ahead from any country, or be accepted as legal tender. Crypto transactions are anonymous and untraceable, and governments are trying to shut down that practice because it’s how criminals love to do business.
There are exceptions. Ripple, for example, is a centralised cryptocurrency as opposed to Bitcoin and it’s also regulated. This is something banks and nations can get behind. Of course, they don’t offer any more earning potential than most existing methods, so they’re kind of pointless in that way.
Lastly, let’s not forget that if you’re a gamer, it’s your job to hate all cryptocurrencies with a passion! Why? Because it’s those idiots driving up the price of graphics cards because their demand is more than the supply!
So let’s recap. They’re confusing, volatile, risky, prone to scams, and screw gamers over. Say it with me, “Boo cryptocurrencies!”