I have seen the Crypto Light. It took a while, but I think I can say I have become a true believer.
I tried mining coins back in about 2014, and just like everyone, wished I'd taken it a bit more seriously. If I had, I'd be a millionaire. But alas, I'm not.
But it's not too late. Like almost anyone else who has "seen the light," I believe that we are in the infancy of what Crypto is going to be, and that the massive majority of the best is yet to come.
Yesterday, I said to my friend, Luke, "I can't get enough Crypto." I have been reading voraciously, watching TED Talks, and generally eating up anything I can find on it. I have The BlockChain Revolution queued up on my reading list. I'm all over it.
So I thought I'd post about some of the things I've learned over the past few months. I'm no expert, but hopefully I can provide some insight into what is going on in this space that I really believe is going to change the world.
There is a lot of FUD going around
Fear, uncertainty, and doubt are rampant in the Crypto space. A lot of people know a very small amount about it. Some know a lot. The space is rife with charlatans and thieves. Scams are everywhere.
I don't start with this item to scare you. I start with it because it is probably the most important thing to know. If you want to find out about Crypto, you need to actively research it. You need to find out what it is all about before you commit even $0.01 to it. There's a lot to know, and a lot of risk for anyone, and you need to know this before you even begin.
Crypto isn't about currency and money
The term "Cryptocurrency" really ought to be banned. Bitcoin and the like simply is not currency. It is not equivalent to or able to replace paper money and the like. It is unlikely that you are going to go to McDonald's and buy a quarter pounder with Bitcoin. It's not really a medium of exchange like dollar bills are.
You miss the point entirely if you think that Crypto is about "money". It's not. Instead, it is about the "store of value". Crypto Assets -- the better phrase to use instead of "CryptoCurrency" -- are more like gold, if we must create an analogy. For 5000 years, gold has been the safest of havens for one's wealth. Rising gold prices are often an indication of inflation or some other calamity that may render money -- i.e., currency -- worthless or close to it.
If you were living in Venezuela a year ago or so, and you saw the handwriting on the wall, you likely took every penny you had and bought gold with it. If you had done so, you'd likely be the richest person in the country right now. But you could have also bought Bitcoin, and very likely you would have been able to maintain or increase your wealth while everyone around you was literally going broke.
Crypto assets are a store of value, not currency.
A lot of smart people are profoundly ignorant about Crypto
Warren Buffet is a smart guy and a successful investor, but he doesn't have the slightest clue about Crypto. It's funny to me that he can be so right about so many things, and so profoundly wrong about Crypto. He may see the light someday, but right now, he's missing out on the biggest investment opportunity of his lifetime. (But then again, if you believe Nassim Taleb, you'll realize that Warren Buffet is merely the product of pure luck, and so perhaps his missing the mark here isn't so surprising.)
Buffet isn't the only one. A lot of people are predicting a bad end for Crypto, which leads to...
A lot of people want Crypto to fail
There are clearly many people who do not want Crypto to succeed. They have vested interests that will be radically disrupted by the rise of Crypto Assets. If you are part of "Big Finance" or if you are part of or invested in FAMGA, then you are terrified of Crypto. You very likely are actively trying to undermine the inevitable.
Crypto can drastically reduce uncertainty
One of the most difficult things about remote commerce is uncertainty. How trustworthy is the person on the other end of my eBay transaction? You can look at things like reputation, comments, reviews, etc. to reduce uncertainty, but it never drops to zero.
That's not to say that the use of BlockChain technology (the backbone of Crypto Assets) completely reduces uncertainty, but it does go a long way to mitigating it. Because the BlockChain is public and immutable, you can enforce "smart contracts" to ensure that both parties comply with an agreement. You may not trust the person on the otherside of a transaction any farther than you can throw him, but because of the BlockChain, you don't have
Just as capitalism takes the general notion of greed -- the desire for monetary gain -- and leverages it into a benefit for all, so the BlockChain leverages uncertainty and turns it on its head and makes it a benefit as well.
Decentralized Organizations are the future
I've written about this particular item before. Shoot, you are reading this on a DApp, so I probably don't have to say much more here.
Suffice it to say that I believe decentralization will be the norm in the future -- it's almost inevitable.
Regulation is coming
Right now, Crypto is largely unregulated. However, as it grows more popular, governments are going to do what governments do and try to regulate and tax it. I believe that they will largely be unsuccessful in doing so. In any event, the best course for governments to take is to go with the flow rather than trying to "squash" Crypto -- something it will fail at.
Crypto is going to flourish, though some countries may make it hard to use Crypto within their borders. If the US government tries to "control" Crypto, they may be able to do it in the US, but the rest of the world will benefit and we in the US will lose out. China will certainly go to great lengths to maintain control over Crypto in their country.
Links
I've read a ton over the last few weeks, and here are some links that I found particularly interesting.
Videos
- How the blockchain will radically transform the economy by Bettina Warburg
- How the blockchain is changing money and business By Don Tapscott
Articles
- A Letter to Jamie Dimon
- Almost anything by Lou Kerner
- Why Decentralization Matters by Chris Dixon
- Dawn of Autonomous Corporations, Powered by Bitcoin, Part 1 and Part 2
Recommended Exchange
Conclusion
A huge change is coming and Crypto is the catalyst. I am a true believer.
Totally agree. I bought btc back in 2011 because of its technology , not as an investment. I got stubborn and held it believing in its mission. That paid off very well for me. I have doubts not because of the technology. I have doubts because of human behavior particularly with greed. But it will prevail. I sold my btc at the highs in early 2018 and I'm happy with that. But I still believe.
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