The "Experts" Crypto is all wrong

Bitcoin reached a high of about $ 20,000 about a month ago, on December 17th. As I write, the cryptocurrency is below $ 11,000 … a loss of about 45%. More than that $ 150 billion In the lost market cap.

Crypto-comments indicate a lot of rubbing of hands and feet and brushing of teeth. It’s neck-to-neck, but I think the “I-you-so” crowd is more than the “excuses”.

Here’s the thing: if you don’t just lose your shirt on Bitcoin, it doesn’t matter at all. And chances are, the “experts” you see in the press aren’t telling you why.

In fact, the collapse of Bitcoin is amazing … because it means we can all stop thinking about cryptocurrency.

Death of Bitcoin …

Within a year, people will not talk about Bitcoin in grocery stores or on bus lines, as they are now. The reason is here.

Bitcoin is a product of fair frustration. Its designers have explicitly stated that cryptocurrency is a reaction to government misuse of fiat currencies such as the dollar or the euro. It was supposed to provide an independent, peer-to-peer payment system based on a virtual currency that could not be underestimated, since they had a limited number.

That dream has long since become a jetty for raw speculation. Ironically, most people care about Bitcoin because it seems like an easy way to get more Fiat currency! They don’t own it because they want to buy pizza or gas with it.

As well as being a formidable way to transact electronically – it is painfully slow – the success of Bitcoin as a speculative game has made it useless as a currency. Why would anyone spend it if it is appreciated so quickly? Who will take it when it is quickly devalued?

Bitcoin is also a major source of pollution. It only takes 351 kilowatt-hours of electricity to process a transaction – which releases 172 kilograms of carbon dioxide into the atmosphere. That’s enough to power an American family for a year. The energy used by all bitcoin miners to date could power about 4 million U.S. households a year.

Unusually, the success of Bitcoin is as old as time Guessing game – Not its planned liberal use – has attracted official crackdowns.

China, South Korea, Germany, Switzerland and France have imposed or are considering imposing restrictions on Bitcoin trading. Several intergovernmental organizations have called for concerted action to curb the bubble. The US Securities and Exchange Commission, which once considered the possibility of approving bitcoin-based financial derivatives, now seems hesitant.

And according to Investing.com: “The European Union is enforcing strict rules to prevent money laundering and terrorist financing on virtual currency platforms. It is also looking at the limits of cryptocurrency trading.”

We may one day see a functional, widely recognized cryptocurrency, but it will not be Bitcoin.

… but a boost for crypto resources

Good. Getting Bitcoin allows us to see where the real value of crypto assets is. Here’s how.

To use the New York subway system, you need a token. You can’t use them to buy anything else … though you Can Sell ‚Äč‚Äčthem to anyone who wants to use the subway more than you do.

Indeed, with a limited supply of subway tokens, a vibrant market could emerge for them. They can even trade much more than their original cost. It all depends on how many people Would like To use the subway.

This is, in short, the scenario of the most promising “cryptocurrency” except Bitcoin. They are not money, they are Token – “Crypto-token,” if you wish. These are not used as ordinary currency. They are good at the platform they were designed for.

If those platforms provide valuable services, people will want those crypto-tokens and it will determine their value. In other words, crypto-tokens will be worth as much as the people paying for the things you can get for them from their respective platforms.

That will make them Real resourcesWith The underlying value – Because they can be used to get something that people value. That means you can reliably expect a stream of revenue or services from owning such crypto-tokens. Critically, you can measure that stream of future returns against the value of a crypto-token, just as we do when we calculate the price / earnings ratio (P / E) of a stock.

In contrast, Bitcoin has no underlying value. It has only one price – the price determined by supply and demand. It cannot create a future income stream and you cannot measure anything like P / E ratio for it.

One day it will be worthless because it will not get you anything real.

The future of ether and other crypto resources

Crypto-token ether is guaranteed I think so Like a coin. It is traded on cryptocurrency exchanges under the code ETH. Its symbol is the Greek capital letter Xi. It is mined in a process similar to Bitcoin (but less energy-intensive).

But ether is not a coin. Its designers described it as a “fuel for managing the distributed application platform Ethereum. It is a form of payment paid to the machine to run the activities requested by the platform’s clients.”

Ether Token gives you access to one of the most sophisticated distributed computing networks in the world. It is so promising that big companies are falling on top of each other to develop practical, real-world uses.

Because most people who trade it don’t really understand or care about its real purpose, the price of ether has bubbled up and blurred in recent weeks like Bitcoin.

But eventually, Ether will return to a stable price based on the demand for computing services that it can “buy” for people. That would represent the price Real value That might be worth it in the future. It will have a futures market and exchange-traded funds (ETFs), as everyone will have a way to evaluate its underlying value over time. Just like we do in the case of stocks.

What will be the value? I have no idea. But I know it will be much more than bitcoin.

My advice: Get rid of your bitcoin and buy ether at the next dip.