Crypto down, stocks down, keep emotions entact.
I do feel that any time crypto prices drop that it is a definite buy. Yet since I have seen the peak in prices as of late last year it somehow feels a lot longer than it is. My thought process is if in fact I truly believe crypto and especially bitcoin is the future of currency then at today's prices it is truly a bargain. Not to say that bitcoin would not go to zero but the chances of it happening to me seems doubtful. Why?
Problems With the Economy
There is truly an imbalance when it comes to wealth. Take America for example. Tax data from 2015 shows the following:
Courtesy of CNN.com
To be earning in the top 1% in America one needs to have a gross income of $450,000. Take this stat for even more dire example. "There are about 350 million people in the US and 1 percent of that is 3.5 million, but in reality, only about 400 people control more than 10 percent of the US GDP." The bigger the earnings an individual the last there are. Bottom line is the share of wealth is not evenly distributed and although we are in a capitalistic society many of live in America struggle to have enough to get the basic necessities.
That is where cryptocurrency comes in to play. A form of currency that can be equally earned by all as it is themed decentralized therefore no one person or entity can manipulate. Although human nature is greed the world being decentralized is unlikely to happen. Yet cryptocurrency has the capacity to create such a path as fiat currency has shown it is failing to do so.
Human Greed
We can continue with what makes cryptocurrency likely to fail and by pointing its weakness hopefully someone can discover a solution to the fail points and make crypto in general better.
Currently 2018 has been the best year for ICOs to date. Although prices of crypto has not been so great for the bulls there has been a lot more interest and people involved than last few years. The adoption of crypto by more people is a good thing however the drawbacks basically comes down to people's greed. Just think with so many ICOs going around there are bound to be some that are scams. What is worse is the investors that do get scammed may likely never want to invest in crypto ever again and in turn making a downward spiral on overall prices.
There will always be people who want more than what they deserve. Yet blockchain is a very interesting technology that can bypass the human factors and make a currency validated without the greed of man. There is no crypto that can do that today but I believe sooner than later that one will exist.
Technology
One important factor to investing in any crypto coin/token is what the coin does. The purpose of the coin and what problems it try's to solve is key to its future growth and evaluation. Take ETH for example. With the ability to create smart contracts and being the first of its kind to do so the value of ETH currently is second in market cap.
Being the first and doing it well has allow many crypto coins such as Bitcoin and ETH to thrive. The earth shattering technology that originated to their creation and continuation of upgrades have allowed its worth to rise simultaneously
In conclusion presently it may seem the big drops in prices are hindering the growth of crypto. But with so many good reasons to stick with specific crypto coins one has to make the decision to hold for the long term. What do we have to lose for holding if the current system is failing us?
Thanks for reading.
Date of Post: 7/10/2018
(Sidebar note I was able to edit a post that was more than 7 days old. I had added an additional search word and it seems very strange that I instantly got several upvotes although none of them would have earned me anything due to the more than 7 days post. Just curious if anyone else has encountered this bug?)
Thanks for the enlightenment