You made a bad investment putting your money into cryptocurrencies... I'm sure you heard or told yourself that in the last couple of days if you invest or trade cryptocurrencies.
Tokyo based prosecuters' trial against Mark Karpeles has started. Bitcoin has fallen more than 20% since its alltime high a few months ago. Gold gas lost value in the past two months by the tune of over 6%.
On the other side, central banks around the world are raising interest rates this summer making an investment in tradition assets much more interesting than before. (research it)
Where does this all lead us? Was this all just a dream and the guys that "stayed awake" are just beginning their laughs of a lifetime?
I say to any naysayers and stay-awakers to start dreaming, for we dreamers shall have the last laugh! They'll be telling us someday as they do now how bad it is and then in an instant, the believers will profit huge.
While the title of this post is about the weaknesses of cryptocurrency, my opinion is that these are manmade weaknesses and the power of the blockchain will overcome.
The big ol' players are fighting the battle. They are buying themselves time. Trying to figure out how they can stay rich and powerful when a decentralized and liberating currency comes.
Here's the thing about digital money. It will do magical wonders for the stock market, and it will put money into everyone's pockets fairly. There is no manipulating digital currency, it is too transparent. Digital currency is impossible to block, so everyone has an equal chance and no corrupt government or rich person can meddle.
The current bloodbath is from market manipulation techniques and well timed divergencies to make crypotcurrency investors and users believe it is not safe or secure, not to mention that most of the top currencies rose way too high in very little time. There must be corrections along the way, because there are two sides to value.
I have my bet on cryptos coming out the winner... it's just going to be a fight. No good things come easy.
Let me know what you think?
Interesting posture about crypto currencies value. I do think the crypto verse is the second player in global economy, still, even if we crypto enthusiasts disapprove that. So yeah, interest rates of fiat currency affect, the psychology and emotions of the market, and economic perspective in general.
I additionally add some questions to encourage discussion.
"so everyone has an equal chance and no corrupt government or rich person can meddle". Not so fast, there is a difference between Proof Of Work (PoW) and Proof Of Stake (PoS), where the later in fact rewards more, indirectly, to whom has more worth of bitcoins.
Useful guide about PoW Vs PoS
"decentralized and liberating currency comes. What about the governments issuing their own crypto-national-currency for monetary control and tax purposes?
Fedcoin: The U.S. Will Issue E-Currency That You Will Use
If you like to keep sharing ideas about the technology and business about a cryptocurrency, please follow me @sono.arquetip. Always something new and interesting.
Firstly, great article and I stand corrected. Makes sense. Thanks
Secondly, that is a very interesting take and to be honest I never really paid attention to the fact that the US Fed would issue its own currency. I counter with this comment and question: Should the Fed issue its own currency, I would (maybe naïvely) assume you could exchange that premined token for any other thereby acquiring ones liberation once again. If the Fed does not outlaw the trade of gvt tokens freely, would this devalue or add value to the gvt token?
Thanks for sharing your input and taking the time to read through my post.
The small rate hikes wont keep traditional assets attractive and anyone who is investing in crypto knows that decentralization will win out. Look at what has consistently happened to the dollar in any rate situation since 1913 ..... can we say lost all of its 1913 buying power by 97%
In 1901, the money supply was just $7 billion. You could buy a pair of shoes with $1. Today there are literally 1,900X more dollars in existence and it's tripling pretty much every other decade since the 60s
The Elites and powerful bankers are now in to digital currencies. I am afraid that they might set another trap for their future control. Please browse at what Corbett said in the enclosed blog. Cheers.
https://steemit.com/financial/@kaminchan/the-end-game-and-new-world-order