While I'm ecstatic about the growth of the blockchain in 2017, as we enter 2018 the market is at a dangerous crossroads. And the unbalanced way billions in investor capital are sloshing around looking for homes, I'm really worried we've entered into the trap the governments and banking rentiers have been waiting for.
These people are wizards at creating bubbles and pricking them.
And with Bitcoin grinding through a short-term bear market here -- and good for that, it was needed -- the possibility exists that this short-term correction turns into a full-fledged rout as the opportunity arises to fleece all the newly-minted crypto-millionaires out of their money.
I've warned about the dangers of adding a bank-controlled futures market to Bitcoin. And those fears look to be very well-founded (despite the bullshit flung around here by so-called market professionals).
And the industry itself isn't doing itself any favors with all of its insane projects, forks, scam-coins and the like.
My latest piece over at Crypto-News.net covers a lot of my fears:
Because, it’s easy to say, “But it’s Blockchain!” as if that is the sole reason for a project’s existence. Case in point, any publicly listed company that adds blockchain to their name or announces some blockchain-based product to their offerings has been immediately rewarded with scads of speculative money.
How many crypto-boiler rooms are out there now trying to convince people this is coin is ‘the next big thing?” I question the motives (and nee the sanity) of John McAfee’s “Coin of the Day” gig he’s been doing on Twitter.
It's time to grow up and not give The Powers That Be the opportunity to strike back and we not have an exit plan. There are billions literally trapped in the crypto-space at this point with no way to get the money back out until we've all been thoroughly bilked.
The wrong people are getting rich and Jamie Dimon doesn't like that. But, at the same time we shouldn't be acting with our money in a way that would embarrass a sailor on three-day shore leave in Bangkok blush either.
Keep your head, invest in good projects with developers you trust and have a track record of producing results in a timely manner. Support technology and projects that 1) aren't fundamentally flawed coughEthereumcough and 2) create foundations for blockchain's future that will resist all forms of centralization.
In my mind there are only a few that I truly trust and Steemit is right at the top of that list. This is the platform that can build a communications platform to resist the all of their attempts at making you an 'un-person.' This is the platform that builds the infrastructure to destroy their 'management of perception' economic models.
When I look around and see Bitcoin getting thrashed for $1500 in 90 minutes with seeming ease nearly every day, while Bankster Coin, Ripple, is up 8 fold since the Bitcoin peak, I know where this thing is headed. And so you should too.
Which way do we go in 2018? It's our choice.