Everyone talks about cryptos, etherum, bitcoins, dodgecoins, how they are the next big things and how they are going to make you rich and change the world. But is that true?
Can they actually deliver on their ambitious promises?
Here is what you need to know about cryptos and why they are extremly dangerous.
Feel free to post your comments if you don’t agree.
- Cryptos and digital coins do not have an intrinsic or fundamental value. They are all based on promises and a digital trust system using a public ledger and expensive calculation hubs that do not “trust” anyone. Quite ironic. You have to “trust” a system based on mistrust.
- In addition, there is no underlying cash flow to validate the value of cryptos, it’s all based on cloud computing. A value based literally on cloudware and computer algos created by hackers and bored software engineers.
- Despite wanting to be a secure alternative for everything in the financial world, cryptos are actually very insecure on every level. This is what happens when you let software engineers design a tool for a financial world they are angry at and do not fully understand. They create a self-destructing monster that can take everyone down with them.
- Cryptos are usually traded on insecure exchanges prone to attacks by rivals and hackers, and when that’s not the case, you can get exit scammed by the owners of the exchange looking for a quick payout by taking all your cryptos hosted with them.
- Cryptos are not coins, or assets, or stocks. What are they then? Nobody knows really, not even the financial regulatory bodies like the SEC, because they are a class of their own and that’s the problem.
- Cryptos exchange houses are poorly regulated, even though recently big efforts are being made to change that. This means all cryptos trades are prone to market manipulations and therefore high volatility, in short, being dangerously risky as an asset for investment. You are more likely to win at your state lottery long term than get the right pay off from a crypto investment.
Cryptos are at best vaporware failing to deliver on their promises, at worst, ponzi scams for all the digital predators out there. I am sure there are another dozen reasons why cryptos are dangerous, but that would be for another post.
Buying cryptos when you start investing is like shooting yourself in the foot before you start an important marathon. Things are hard enough for investing under normal conditions, you do not need to add another level of risk or difficulty.
In short, don’t invest in cryptos or bitcoins, they are not a good deal.
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