CRYPTO SERIES 01
Yes, crypto millionaires and billionaires will certainly be minted in the
coming years. There will be plenty of rags-to-crypto-riches stories to go
around. And maybe you will be one of them. (If you’re reading this, you’re
an early adopter, so it’s possible.) But don’t be stupid.
Things are happening.Even the incredible predictions of bitcoin becoming
$50,000 by year 2020, and later $100,000 by 2025, or even $1 million by year 2034
aren’t completely impossible. Bitcoin was less than $800 four years ago.
A few other great cryptocurrencies will rise beyond anyone’s
imagination, too. But don’t be stupid.
I felt compelled to warn you because I’m seeing a lot of smart
people suspending their disbelief. I’m seeing a lot of smart people turn
stupid.
Cryptocurrencies are great. But I want as many of my readers as possible
to avoid the crypto-tulip mania. I want as many people as possible to
be less stupid about crypto. Because there’s going to be a lot of stupidity
in this space — there already is. And I want to live in a less stupid world.
The cold, hard truth, if you can handle it: Up to 99% of the cryptocurrencies
that exist today are total SCAMS.
But before you rush off and sell every “sure thing” you’ve snapped up
thus far, read this closely. There so many currencies and daily IPOs.
That’s OK. Cryptocurrencies are complicated. All of it is worth going over
at least till you understood basic facts about the cryptocurrency of you interest.
It’s important to become as familiar as possible with the main points.
Especially if you plan to invest in this space.
This Crypto Series will help you understand this abstract cryptocurrency stuff.
It will help you sound more informed at dinner parties. It will help you
separate the wheat from the chaff. Just follow this series daily.
Once you realize you can ignore about 98% of what happens in the
cryptocurrency space, it becomes far less intimidating.
I see so many people now talking about cryptocurrencies
that are pure scams. I see so many people day-trading these like
they are penny stocks.They are not. But the rise of cryptocurrencies is part
of a 3,000-year-old historical trend in the direction and evolution of money.
It’s not a fad. But irrational investors are scooping in and treating it
like the latest investing fad. They are going to get burned.
The picture is too familiar. Similar case occurred in 1997, when people were
busy flipping penny internet stocks and any company with suffix “.com” at the
end of their name. It was so pathetic to watch.
In the era of internet boom, People didn’t realize the internet was not just a fad.
Companies like American Express or Time Warner actually had to be convinced to create
a website. That this was the future and they needed one.
So there was value in the internet. The internet was here to stay —
and it kept growing, into the mobile internet and now the “internet of
things.” And it’s still growing.
But the scams got flushed out. And anyone in them went broke.
The same thing is happening here. The internet was ultimately a multitrillion-
dollar opportunity. It’s clear now — and you would have been
laughed at if you said this then — that many internet companies will be
worth well over a trillion dollars.
Apple, Amazon, Facebook, Google, Uber and on and on.
Cryptocurrencies are not just a trillion-dollar opportunity but potentially
a hundred-trillion-dollar opportunity or more.
This sounds ridiculous. Again, it sounds laughable.
But there’s simple math here. Simply ask: What is the demand for
money?
The demand for money is over $150 TRILLION. That’s how much
money is out there. But currency, as it stands, has many problems. If a
currency or idea came along that solved these problems, then the demand
for that new idea would be over $150 trillion.
We will describe why and how and what and where in the upcoming series.
But cryptocurrencies solve the problems created by “regular” currencies. To start: security,
privacy, forgery, double-spending, centralized control, risks of inflation and
manipulation and on and on. Cryptocurrencies are here to stay. You need to be well
informed to take informed decision on how to be part of this without getting burned.
Stay tuned for the next series.