This is statements you see around the internet, things like.
- Crypto is a scam
- Crypto is a ponzi scheme that only works when more money is added
- Bitcoin is overpriced
- Blockchain is the future
- Digital Currency is the only way to go
All of these comments have truth and meaning in them, with logic and facts to even back up there claims up.
Crypto has scammed people, ICO’s have been made and creators have ran off with all the money. This is the definition of a scam.
Crypto has been Ponzi Scheme. Looks at bit connect for example, so as they got put under review. The system got shutdown and 95% of all money was lost in 48hours. They only had very small volume yet the price dropped 95%. This sums up ponzi scheme.
Bitcoin was overpriced when it quickly went up to 19k then within a few weeks plummeted back down to 7k. A good reference point for how much money is invested in the top coins is to look at tether. With a market cap around 2-3 billion, this is not only a market cap but a total amount invested. Any coin ranked above tether is ranked higher due to greed and limited coins in circulation. In most cases than can be overpriced.
Blockchain is a future tech, more and more companies are using it. It does have its problems and setbacks but will be used more as time goes on. Will be refined and fine tuned to be safe, fast and environmentally friendly.
Digital currency is the only way to go. The future will be pretty much all digital currency, but what kind of digital currency is the question.
A Deeper Dive
From here out in the article is going to be theory crafting based on string logic.
Lets just say most of the worlds money went into your current top 20 digital currencies like bitcoin instead of local banks.
What would happen?
I think the world economics would collapse and people would be far worse off than they are now. Don’t get me wrong, things could be better than they are now but things can get much worse.
Why would that happen?
This would happen because money would all be in companies and individuals that have little investing knowledge. Bitcoins price would be like 600k per coin and Ethereum would be 100k per token to give you some perspective.
Money would stagnate, people will hold there funds and not spend them because they would want to make more money. I suspect spending would be on high risk investments like ICO and gambling.
Businesses would not get the spending they require to make a profit due to massive deflation, staff would get fired, people would be forced to work for much less money or have no jobs. Wealthy countries would soon become poor with limited jobs. People would be forced to spend there digital money and there wealth would decrease because the economy can not support it.
Countries would not collect the taxes they require to have heath systems and country development. Like schools, parks, maintenance, roads, benefits and more.
Lets take it back to reality and have a look into the coins currently .
What is one bitcoin relay worth?
If you hold one bitcoin right now its worth around $12,000 usd. That $12,000 is just sitting there and doing nothing. You don’t want to spend it because there is a limited supply, you know that if you hold your coin and tell people how great it is the price will go up. A bitcoin might be worth $12,000 right now, it might even be even worth more. But owning one might help you gain more money, but it wont help your country or economy.
What happens with money right now?
Currently most money is in banks or stocks and banks have there money in stocks and loans. They give you a small return for leaving your money in the bank so they can invest with it. It is sad that the interest they give you is close to the price of typical inflation. Banks allow you to make payments with visa instantly. Banks also allow you send money over seas, with a exchange cost.
Whats wrong/right with banks?
The returns are small, the fees are high, transaction times are high. International payments have a 2%+ fee.
Your money is secure and can be returned if stolen or lost. They offer loans and interest. You can make and track payments.
What will happen over the next 10 years?
My best guess is that most or all of the current(2017) digital currencies will have crashed(not top 100 anymore) and there will be hybrid currencies that act like a currency but combined with stocks, indexes and commodities at the same time. Or in some relation
There will be more regulation.
- Each country will have its own digital currency
- Big companies will have there own digital currencies
- Some digital currencies will be backed by commodities like oil or gold
So you will be able to invest in a currency like a stock. Or just put your money into your own country. Trading between digital currencies will be easy and have little fees like they currently are. Transaction will be instant. And interest will probably be slightly better than it is now.
It is possible that stocks will just turn into currencies and get listed on the coin market cap.
So the top digital currencies in in 10 years will be something like
- USA global standard
USA will probably have some kind of King Kurrency(like bitcoin now) that people will trade around. Like a USA world standard or some bs.
Well this sums up possible outcomes, I number of things could happen, but I think its going to be alright and the cream will float to the top 🙂
Thanks for reading and feel free to check on all the coins we review.