Is Cryptocurrency the New Shiny Object Syndrome – My Opinion

Last Update: April 08, 2018

I am sure there are many of you here at WA that have jumped on the cryptocurrency bandwagon. I personally have not and do not intend to. But as I sit back and read all of the pros and cons, I am starting to see many signs of a shiny object syndrome appearing.

Another thing I have noticed is how similar certain things are to the whole Multi-Level Marketing, MLM, culture surrounding people in this new form of investment. And though there will be people who will swear that crypto is more than an investment opportunity, I still cannot see it.

SHINY OBJECT SYNDROME

In an article on Entrepreneur.com about shiny object syndrome or SOS, it is a “Disease of Distraction” and affects entrepreneurs specifically because of their unique qualities of being highly motivated, craving new technologies, new developments, and new money making opportunities.

There is nothing wrong with keeping abreast of new possibilities, but if you are already involved with another opportunity, an SOS can be a bad thing. It will distract you away from that which you have already started and could even make you jump ship before you see any meaningful results.

Then there is the over-spending of money to chase after and try this new opportunity. Though I do agree with those I have heard say, ‘do not risk more money than you are willing to lose in cryptocurrency’, my feeling is why risk flushing that money down the toilet, especially when it is not yet widely accepted?


WHY IT REMINDS ME OF THE MLM CULTURE

I have seen and read the debates of why cryptocurrency is and is not worth investing in. Even Kyle created such a great debate stir of the crypto hornets nest with his Facebook posts about the riskiness of such an endeavor. This is why I knew his recent post about Woot Coins was an April Fools joke.

In reading many of the comments from those involved with cryptocurrency and the arguments of why it is a good investment, it reminded me of people who are in an MLM defending its legitimacy. Even in the face of sound arguments to the contrary, they defended the benefits of cryptocurrency.

Many made claims of it being secure because of blockchain technology. But even though the blockchain concept does seem secure, cryptocurrency as a whole is not. There have been many scams popping up, taking advantage of this new wild west style of currency investment.

But with many online companies and social media networks starting to take action against crypto, has that shiny object syndrome affect started to slow down and give investors pause? With all of these scams and ability to get scammed, is yet another reason why it reminds me of an MLM culture.


GOOGLE BANS CRYPTOCURRENCY ADS

Following a similar ban by Facebook earlier this year, starting in June 2018, Google will ban all cryptocurrency-related advertising across all of its ad platforms. This means no more ads about cryptocurrency-related content, including Initial Coin Offerings (ICOs), wallets, and trading advice.

This is not going to be a selective banning but rather an all-out across the board ban. Even companies with legitimate cryptocurrency offerings will not be allowed to serve ads through any of Google’s advertisement products. Google’s director of sustainable ads Scott Spencer recently said the following.

“We don’t have a crystal ball to know where the future is going to go with cryptocurrencies, but we’ve seen enough consumer harm or potential for consumer harm, that it’s an area that we want to approach with extreme caution.”

Even though many who got into crypto in the early stages have made a lot of money, like those in an MLM at the top of the pyramid, because it is still largely an unregulated space and spawned many high profile scams, is cryptocurrency the new shiny object syndrome? Google and Facebook are proceeding with caution.


YOUR THOUGHTS ON CRYPTOCURRENCY?

I am sure there will be many people on both sides of this debate, so comment below what you know. If you have jumped on the crypto bandwagon, have you made any substantial gains? Do you have any advice? Or are you playing it safe like I am and relying on the proven ways to make money online?

Consider this last bit of information. Google’s parent company Alphabet makes roughly 84% of its total revenue from advertising, and keeping its advertising ecosystem safe is critically important. Banning all cryptocurrency-related advertising is a step they see as necessary to preserve that safe environment.

You can read the news of this upcoming ban here.

Join the Discussion
Write something…
Recent messages
enteract Premium
I think that it is important that we all stay present and aware of this new Money. April 1, 2017 Bitcoin was $1184.00 per coin, and over 6000.00 as I post this note. It is an asset that one can hold like Gold... Think about this if you were able to save .85% of a bitcoin valued at $5247.00 and held it in your Blockchain wallet "AKA Your Bank" till the end of the year and the bitcoin hits $50,000 per coin as it is predicted. That $5247 (85% of a bitcoin) valued would increase to $42,500.
Reply
Defiant6 Premium
Cryptocurrencies have become a shiny object syndrome to many because of how quickly Bitcoin has risen the last couple of years and how people who got in early have made a lot of money recently. The problem is, the people who didn't get in on Bitcoin or some of the other cryptocurrencies early want to make money from this quickly and that's just simply NOT going to happen. I see cryptocurrencies as another investment tool, but a MUCH more volatile one compared to traditional investment tools such as stocks and securities. I've invested some in cryptocurrencies because I actually believe the technology behind it, blockchain, is where the world is headed especially when it comes to processing transactions all over the world very fast (when and if it goes into mainstream adoption).

With that said, I have NO illusions of making quick money with cryptocurrencies. I'm in this for the long term, but my focus will be here at Wealthy Affiliate where I can truly make a long term income to where the sky is the limit. I've invested in 3 cryptocurrencies, but just enough to where I'm not hurt financially if they go south or completely collapse. It is sad to hear though that many people invested their life savings into cryptocurrencies especially Bitcoin in order to make a quick buck and instead losing a lot of money the last couple of months. Wealthy Affiliate is the better long term solution to earn income to meet ones financial goals.
Reply
MozMary Premium
nice to hear a contrary opinion to what's all the rage at the moment, I didn't look closely at it but it was shoved in my face yesterday trying to access my rocketmail - Bill Gates and Richard Branson looked like they were investing heavily and a blurb about taking from the rich and giving to the poor, a redistribution that would not cost anyone anything except a couple of percentages from the rich, and all based on the trading market

ouch ouch and ouch, about a billion red flags popping up everywhere, but where there is popularity on the web these days there doesn't have to be any truth for people to score a quick kill moneywise
Reply
PMindra Premium
Hi, Boomer.

I really like your opinion on this topic as it covers much.

I do not respond to too many posts here at WAU, but I have always found your contributions to be of value. Thank You.

MLM and 'Shiny Objects' are a lure for those that want returns immediately. As we all know, it does not work that way. However, this industry can work well for those that have what WA offers meaning the siterubix platform.

RE: CRYPTOCURRENCY

Trading Platforms are basically Scams.
Automated trading Bots are basically Scams.
Even most of the 'Staking' programs are scams.

The above are my opinions.

If you want to get involved in this new technology of money, you have to work at it. Just like what we do here at WAU and it can be done.

Cryptocurrency, is actually real, but it is as you say at the 'Gold Rush' stage.

Those that know how to mine it, know that it takes time and knowledge.

Those that don't, and want to get rich quick....well, you outlined it above.

You asked for my thoughts...I am going to offer some:

I first learned about Bitcoin through an MLM program called 'Zarfund' back in 2016.

It was a 'Gifting' program and as you know, most of these programs fail because people do not follow the directions of the company, but rely more on 'bullshit' offered through youtube scavengers, "an animal that feeds on carrion, dead plant material, or refuse," etc.

The program is still around, but is at a steady halt.
But what it did for me was to accumulate approximately 1.2 bitcoin. Bitcoin at that time was around $200.00 USD.

What am I going to do with this Bitcoin?

I am going to learn first as we do here at WA

OK. I have 1.2 bitcoin and I am learning.

Many new 'Shiny Objects' are directed at me to relieve me of my Bitcoin. I fall for one. D9Clube of sports arbitrage trading. The arbitrage trading made sense of a daily 1.8% return, but guess what? they were not trading.It was Ponzi.

Lesson Learned.

That is why everyone should not fall for "our company is going to do this and that." They do not and run away with your money.

MLM can be nasty. Network Marketing can be good. Replicated websites do not work. Wealthy affiliate offers the solution. Create your own Website and become an authority.

Moving forward...

In early 2017, I actually bought 1 more Bitcoin through a machine.
The cost was about $2,000.00 CDN.

Later the same year, Bitcoin went to around $25,000.00

It is now correcting at around $7,000.00 usd.

Am I worried? No.

Cryptocurrencies abound. Do your homework.

ICO's abound. Do your Homework.

Be very careful in this market and remember that everything right now requires Bitcoin to be able to participate in most new markets.

I do not rely on others to do my work.
I trade using 'Gunbot.'

I am responsible for my own decisions and success.
It is not MLM and actually you have to qualify to get their product.

Keep up the great work here, Boomer.

For me, it is greatly valued.

Kindest regards,

Paul.

P.S. Cryptocurrency is very much real. PM me if you want some further understanding.

Peace.
Paul.
Reply
sheikave Premium
Yes, you can make money with cryptocurrency but the question is do you have enough knowledge to exercise your decision to a much better one.

Most of the people invest in cryptocurrencies and cross fingers hoping for it.

Investing is not like that, it is called gambling.

You can make money out of sheer luck or lose.

Those who did make money were intelligent enough to see the trends and learn about it. The invested massively and now are reaping the benefits.

At the current state of cryptocurrencies, the late adopter is trying to get the remaining piece of the pie.

This is doable but remember the inventor of bitcoin clearly stated that the way Bitcoin was built, there will always be an equal same amount of bitcoin that will be available at any time.

This means when people were mining at the early stage they will get bitcoins. Today it is a whole different story there are too many people mining for the limited amount of bitcoin. This means only a few will get these.

One strategy that I have seen is that miners group together to improve their chances of mining one. Then split it among themselves.
Reply
smokeywins Premium
Thanks for an informative post! I too have seen arguments for both sides regarding cryptocurrency. As an e-commerce seller on multiple platforms, one site that used to pay in points, Listia, recently transitioned to a form of cryptocurrency. I thought it may be positive at first until I started looking into what was involved in order to convert my "currency" into actual money. For me personally, cryptocurrency seems intentionally difficult to understand, so I'm going to stick with tried and true money making methods for now.
Reply
JeffL61 Premium
Cryptocurrency will never be the type of venture that will allow a person to earn money consistently over the long term. It's nothing more than a fad, much like in the past owning pet rocks, wearing multi-colored bell-bottom pants, exercising via swinging hula-hoops around one's waist, or stuffing as many people as possible inside VW Bugs were all the "thing".

The fact that scammers online promote cryptocurrency as the greatest opportunity for one to become rich quite easily and if the person would be willing to religiously follow a "proven system" pretty much says it all!

Anyone interested in pursuing this lark needs to take the time to read this article that you articulated quite well, Robert!

Otherwise, should a person foolishly go ahead by recklessly choosing to pursue this venture, believing that it would allow him/herself to obtain permanent financial freedom; metaphorically this individual would be doing the same thing as seen in the second illustration that you included in this article, Robert.

He/she would be flushing a lot of money down the toilet - to which the individual will never at any future point in his/her life ever get back!
Reply
BeauAndNik Premium
I guess I'm one of those fools recklessly gambling my money and flushing it away to never get it back. Oh wait, thats right, I've already made my initial investment back and then some. Nov - Dec I turned over 45k of straight profit.
Reply
Kav Premium
Thanks for your informative blog. Wish you had written it before April 1.
Thankfully I've not been distracted into this. I had lots of pressure to join 'One Coin' which l later was a glorified MLM and linked to all sorts and later changed it's name.

I also feel many confuse the crytos with the technology it.

So far staying out of the boat and watching the sails.
Reply
neilc Premium
I just see the whole thing as a fad.

I think it's kinda funny that both FB and Google (the 2 internet giants) have banned Crypto ads, but some folks are still peddling it like it's the best thing since sliced bread.

Since 1999, I've seen heaps of stuff come and go. The shiny objects never last. Crypto is one of them.
Reply
el-jefe-Kyle Premium
That's because 99% of crypto ads are scams and it can be nearly impossible to really tell if they are or aren't for certain, which is why the big BitConnect Ponzi scheme was able to run for so long and gained a market cap of over 2.6 billion dollars.

It has nothing to do with cryptocurrency in general being a scam. Its just the best play at this point since the market is still so unregulated and scams are running rampant.
Reply
AlexEvans Premium
Thanks for the insights Robert, it will be very interesting to see how and where these currencies develop. Like all investing only invest what you can afford to lose, never borrow money for that next sure thing, you may make money but it will take you over and when the taxi drivers are talking about it and promoting the next big thing it is time to liquidate your holdings if you can.

From observation folks have made good on their investments and others have lost money, in an unregulated market, it can be a lottery. I imagine there will be a number of boom and bust cycles,

The thing is that to be successful we need to invest time and do the due diligence work out strategies, a lot of folks like me just don't have the time at this stage so I will be watching from the sidelines.
Reply
Amar-V Premium
You hit the nail on the head there Robert.
I was always hesitant to join the crypto space. I did the share/rev 'click ads' hype a few years back and made diddly squat.

It is easy money they claimed. Crypto just seems to be the new beefed up version of that.

One marketer I spoke to on Facebook said "well you can buy coffee with your bitcoin in Japan. Trying to convince me.
As we are both residing in UK, I told him well this ain't Japan.

I also told him his granny couldn't use a computer let alone mine some coins on crypto. Either way, no coffee for them.
Reply
bicarmee Premium
Hi, thank you for all the information - it just made me think about the SOS. In one online marketplace where I am selling physical products, one crypto-currency is used as medium of exchange. In my opinion, although it is banned by google (ONLY the ADS) but not its circulation. I guess cryptocurrencies will soon replace paper bills and coins as we are now in the digital era. And one person could have as many different denominations and as many wallets he wishes to have. Just my opinion, though...
Reply
davehayes Premium
Good post, I don't believe Crypto currency is the new shny object at all. Its been around for at least 8 years, maybe longer.

Trouble is, its knowing which vehicle to choose as the currency provider of choice as nearly all of them, with a few exceptions are worthless.

Personally I have a couple of well established vehicles, but as stated they are years old, but no I'm not a millionaire

Crypto currency is here to stay, it gives control back to people, taking it away from the banks, which is a good thing in my mind, expecially bearing in mind we deal with FIAT currency anyway in the real world

Its seems every man jack and his dog is a so called expert of Bitcoin, etc, yet when you listen to them speak, they are regurgitating info they have heard, without any real substance.

Its not going away anytime soon thats for sure
Reply
BeauAndNik Premium
Crypto guy since June last year... Involved with trading, investing and mining.

I'm well and truly profitable.. I have already made back my initial investment and then some... I hold a substantial amount of cryptocurrencies... I'll become even more profitable in the next quarter or so..

Advice... Do your own research... spend only what you can afford to lose/risk... dont think you're gonna buy a coin for $100 and be mooning towards lambos in a years time... Find a legitimate mentor and learn how to trade/invest..

Cryptocurrency has become an SOS because marketers have taken notice and have pushed into this space... Marketers are the ones who push trends down our throats..

They are also part of the reason why any new platform.. new opportunity.. new business gets ruined/saturated.... Reminds me of the saying "marketers will always ruin it for others"...

When there is an opportunity to make financial gains there will always be a few that are doing so with malicious intent.

IMHO you wont find many opportunities to make huge amounts of money hand over fist, like what you can do with crypto right now... I believe this is one of those rare moments in time....
Reply
boomergp08 Premium
Naturally if you know what you are doing, and especially if you have been doing it from close to the beginning, you could be doing well.

But like you said with your advice, I think that many of the new investors are thinking that they can buy that $100 coin and be living large in a year or two.

There is no business or investment that I know of that can make the person super wealthy within a couple of years, and especially without a lot of hard work.

Though I am not against those who are into crypto and making money, for me personally, it is not for me. Though any opportunity is a risk of one's money, I prefer one that is simpler and is not as volatile.
Reply
onlineflow Premium
I'm not a fan of any speculative currencies. However, I like Einsteinium but only because it promotes technological R&D – I am totally inspired by how far we've come since 1492, or even since Mannix's car phone. In my view, Cryptos are no different that what we see happening in Wail Street every single day and, from that perspective it would seem, most of the opposing marketing campaigns come from brother Bankster who's very upset because it is being bypassed and can't find the way to take its usual chunk - my opinion
Reply
boomergp08 Premium
That is a good viewpoint because I too feel that the majority of the big complainers are the big central banks.
Reply
el-jefe-Kyle Premium
I'm a heavy investor in cryptocurrency but from what I see most coins out there are shitcoins... Bitcoin is the biggest shitcoin of all. Its an absolute disaster and will never be usable as it is now. Its slow, consumes tons of electricity to keep the network running, and has no ability to scale, etc. Its true the devs behind it are making progress with how the network operates but at this point its still unusable for the most part.

However, there are plenty of good crypto projects going on that I think have bright futures. Bitcoin started off with so many problems and has come a long way but some of its issues are pretty much unfixable at this point with the scale its on now.

The only reason I own Bitcoin at all is because I trade cryptos and you pretty much need bitcoin as a base pair when trading cryptos back and forth. But other than that I don't really hold any for investment purposes because I think it will die off. There are much better cryptos that will take its place in time and many other cryptos that will take much better and unrelated places rather than acting just as a currency alone.

Anyway... that's just my 2 cents
Reply
PMindra Premium
Too bad that you think that Bitcoin is 'Shitcoin.'
You contradicted yourself.
You cannot deal in 'Shitcoins' unless you have BTC.
Kindest regards,
Friend here at WA.

Paul.
Reply
boomergp08 Premium
Perhaps because Bitcoin was the first, they basically went through the whole crypto experience as the guinea pig, going through a sort of trial and error process.
Reply
GBridgart Premium
It is good to see social media icons having some sort of social conscience. We sometimes need to be protected from our own greed.
For those with the money to risk, and can afford to risk it, the choice is up to them, the trouble lies that often these folk are influencing others who cannot afford to lose their money.
Caveat Emptor
Reply
JayColling Premium
Well said. A person should never invest (in anything) based on emotions or you will lose your money for sure. It takes a lot of time and expertise to invest successfully, and even with all the research you can still get it wrong. I personally love investing in cryptocurrencies.
Reply
boomergp08 Premium
Yes. I have seen people online, especially on Facebook, trying to get others to jump on the cryptocurrency bandwagon, even when they know they have little to no money to invest. It is too big a gamble for anyone, unless they have money to burn.
Reply
boomergp08 Premium
Well if you know 100 percent what you are doing and you have the money to lose, then more power to you.
Reply
fondevilla Premium
Man, a couple of months after joining WA, I was distracted by a friend into another SOS called forex trading. I practiced for 3 months and I lost a lot of money. I will still regret my precious time lost away from WA. These things are not akin to gambling but pure gambling. I hope people here won't get fooled.
Reply
boomergp08 Premium
Yes, Forex Trading is another, and though not as risky as crypto in my opinion, any kind of SOS that keeps you away from a proven system is a bad thing.
Reply
fondevilla Premium
That's very true buddy.
Reply
GlenPalo Premium
While the technology behind crypto may be secure, the idea that crypto markets can be self-regulating is proving to be false. The scams, pump-and-dump schemes to manipulate prices, etc reflect a need for regulation. Otherwise, there is no way to effectively assess reward and associated risk or evaluate product and service value in cryptocurrency.
Reply
boomergp08 Premium
This is true. The blockchain technology behind crypto seems secure but everything else in this self-regulated environment is ripe for scamming.

It's too easy to get people all hyped up over a new and convincing sounding ICO, only to scam the investors and walk away with their money. This was recently done I think in India.
Reply
GlenPalo Premium
A big problem is if someone gets scammed, they have no recourse without spending big money in legal fees.
Reply
boomergp08 Premium
Exactly. I seriously doubt that the FTC can do anything about it. They already have a huge backlog on dealing with real companies operating pyramid schemes.
Reply
GlenPalo Premium
The Securities Exchange Commission is going after Initial Coin Offerings as are several state securities boards on the grounds that ICOs are unregistered securities.
Reply
boomergp08 Premium
Interesting. I did not know that. Thanks for that information.
Reply