Anyone’s been following the markets, that the last couple of years, especially 2017, there has been just a fantastic rise of cryptocurrencies. And there is, I think there’s like 1,100 different cryptocurrencies and for the most part, it looks like all of them have gone up in the last year or so.
It’s currently February 2018, and so, we’re in the moment of there is some sort of correction going on. Either it’s a precipitous drop or it’s just a correction depending on how bullish you are on the cryptocurrencies.
Me, personally, I think the cryptocurrencies are some sort of bubble. Eventually the technology behind it may be something that’s implemented into currencies and money down the line, but there’s just too many cryptocurrencies. There’s too much hype around it. There’s not enough substance behind it. It feels and looks like a bubble.
And as of now, just a little bit over a month ago, Bitcoin, the most popular cryptocurrency, was like $19, $20,000 a bitcoin. Now, it’s somewhere around $9,000. It’s kind of holding that $9, $10,000 for a while, but we’ll see what happens with it.
I remember, like, back in 2009, a buddy of mine sent me a link to an article about Bitcoin. It was a pretty good article and how it was kinda on the rise and everything going on, and I read it, and so I was aware of Bitcoin and I’ve been kinda following it throughout the years.
Jokingly, kinda thinking, I remember thinking like, “God, I hope Bitcoin,” as I started investing in gold and silver, I was like, “Man, I hope Bitcoin doesn’t overtake gold and silver.” I kinda had that suspicion, like, “Man, maybe Bitcoin and stuff like that, other cryptocurrencies, like, that’s gonna be the new gold that people invest in.”
And as of, if you were looking at 2017, and even now, I mean, it’s still kinda up in the air. I mean, one could make an argument that something like Bitcoin will take over gold as a hedge, safety investment to protect one’s purchasing power and wealth.
And, I tell you what. God, dang. I mean, I wish back in 2009, I wish I had followed that article and just for fun, put in like, just say, a thousand dollars. You’ll drive yourself nuts doing these kinda calculations. But, you know, if I just put in a thousand dollars, like, I forget what the actual amount, but I would have a few million in Bitcoin, which is insane.
But that’s another reason that there’s something suspicious about these cryptocurrencies. Just the fact that a few short years ago, if someone just put $500 or $1,000 into Bitcoin, they’d become multi-millionaires now.
And that just doesn’t make any sense. I mean, based of nothing. There’s nothing backed behind Bitcoin. Yeah, it’s the technology and it’s the faith of the people in it, but so is fiat currency. That’s the only reason fiat currency works is because people believe in it. And the fact that someone is just going to, in a few short years, like, make that kind of money, that just seems… it seems shaky. It seems, like, that doesn’t make any sense.
And perhaps I’m wrong. But I tell you a cryptocurrency or a currency type that implements blockchain technology or now there’s hashgraph which is a new technology that’s supposedly is even better than the blockchain. I really see a future in it, but I really hope it starts leaning towards still using real money, real wealth, as the basis of these cryptocurrencies and that’s what they’re backed by.
And I tell you what, I could really get behind some sort of cryptocurrency that is based in gold or silver or a basket of the two, and there’s a few companies out there that are doing this. Like, the Perth Mint of Australia is coming out with a gold backed cryptocurrency. I think I’ve heard that…I think Russia is maybe exploring some sort of a gold-backed cryptocurrency or a commodities backed cryptocurrency. There’s David Morgan of the Morgan Silver Report talks about working with a silver-backed cryptocurrency.
I could really get into something like that because obviously, let’s not deny the technology of cryptocurrencies. I mean, that’s the big hype around them and they probably are. There’s a good chance that something like it, either the blockchain or the hashgraph… something like that is going to be the future of money.
But, it needs to be backed by something. It can’t just be ones and zeroes. It can’t just be a bunch of fake mining going out there and fake scarcity. It needs to have the real scarcity, the history, the track record of something like gold and silver, that has been around for thousands of years. Let’s meld the history of gold and silver with the new technology and I think we’re on to something.
Let me know what you think.
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