Crypto for the future?
So, we Adviser's were advised today from Goldman-Sachs, JP Morgan and a few other Financial Firms regarding the future of Crypto-Currency. Just passing along some information that most of us were taking away from this info letting agenda. This is not "Book it" type of knowledge but still, pretty informative and usually accurate. We were told that the future of most Crypto was looking to absolutely TANK. So, we asked again for a simpler explanation on this meaning of Tanked for the future of Crypto's. So, Goldman dude says, we expect most to be Crushed into a Zero position and the few that might stay afloat (maybe Bitcoin) would venture under $1000 and possibly go under $500.
In the long run they all said the same thing. That most Currencies would kill Crypto because major use across trading nations and markets see NO future for Crypto. The US Dollar is strong as well as Yen, Yuan, Euro and Hong Kong Dollar. While these are stabilizing, Crypto's are faltering and becoming more Volatile than ever.
These guys are usually pretty accurate, but not 100% correct 100% of the time. As the US economy becomes stronger, so goes the rest of the World. Bitcoin and others were jetting upward because the World and the US economies were not doing well. That is changing and fast......just saying!
B safe & B careful
Dean
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Thanks for info Dean. Will have to learn more about all of this Bit coin thing . Finding it hard to get my head around it.
You can imagine, at 74, it is even harder for me. It is why I have been reading and taking courses on the subject for the past year. Now I have started a website blockchainlearners to help other seniors and babyboomers understand the blockchain before not after investing.
The technology behind it actually does have a future and you may be surprised by the demand of it too. There was a recent Senate Committee about cryptocurrencies and the technology behind it and they all agreed that while some regulation is needed for it, they don't want stifle its growth because the technology is very promising and they want to see it grow, so I honestly would not count out cryptocurrencies just yet. It will NOT survive in its current form, but we are just in the very early stages of it and there will be dramatic changes to come.
People want a much faster way to exchange money across the world and the technology behind cryptocurrencies is promising exactly that.
Yes, but what usually drives that sector is coming from those that speak about the market and then everyone follows. So, Goldman-Sachs, JP Morgan, Fidelity Inv.President or some Billionaire Hedge Fund Manager, if they want something to tank they can make it tank.....Certain influences can make or break any stock, ETF or Crypto.
If that Senate Committee had agreed with Goldman-Sachs then I would've agreed with you, but they actually issued a cautiously optimistic tone about cryptocurrencies and the technology behind them. They want it to grow and they see the potential in it. Even with Goldman-Sachs report being released, the cryptocurrencies haven't tanked even further and begun recovering somewhat.
With Ripple for example, they have Moneygram joining them,other big banks around the world and I believe Visa has even signed on with Ripple for further development. There are still big players in the cryptocurrency world that are not ready to call it quits and until they fully start leaving in droves, cryptocurrencies are not done yet. There are also other cryptocurrencies up and coming that are being backed by gold so they are not completely without substance or just digital.
What you're seeing right now is the old guard of fiat currencies battling it out with the up and coming digital currencies for a new way of exchanging money. At some point the dust will settle and when that happens then you'll see who was innovative as well as balanced enough to get through the battle and which ones did not survive. Don't get me wrong, there are casualties coming and there will be a lot of cryptocurrencies that are going to fail. I have no doubts about that, but there are going to be some that are going to get through and really shine. It will probably be some years before we see that happen.
It will be great if the system that wins out is transparent, truthful and available to all! I am cheering for some of iteration of the Blockchain.
Yes it is....considering Bitcoin alone. You have Bitcoin the currency (USD), Bitcoin Trust (Stock) Bitcoin Euro $$, Bitcoin Gold against (USD) etc etc etc. Personally I feel as so many others do, Cryptocurrency will not stabilize and possibly even crash. Look at the Volatility of Bitcoin itself; from 5 years ago around $90 up to $14,000 around 12/1/17 down to $5,500 back up to $8,700 today. VOLATILE. I prefer standard Stocks, preferably Blue Chip or ETF's as well as straight up Investment in the S&P 500 Index.
Sounds like my penny mining stocks. I admit to being a speculator, but I no longer buy anything on margin and only use money I can afford to lose.
I don't go on hunting or fishing trips with the guys and I do enjoy a roller coaster ride. I also enjoy dreaming about what I would do if I won a 50 million $$$ Lottery.
Crypto currency may not have much of a future, but the block chain technology most certainly does. I think if I was going to invest in any of these companies, I would go with Ethereum. They seem to be committed to remaining ethical and building applications on top of the blockchain technology. Definitely a company to watch.
Finance and regular currencies may be doing well now, but what goes up always comes down.
Disruptive inventions and technologies will always cause major disruption and strong opposition from those who are threatened by a change in the status quo.
Bitcoin, like the Model T will be a spectacular success for a number of years before better cars started appearing. Ford is still around just like Bitcoin will be.
The government in the very early 1900's tried to regulate the noisy, smoky, loud motor vehicles and protect horses, carriage makers and livery stable (plus all the jobs).
All cars were banned from using the road in Prince Edward Island, Canada and called "Instruments of Death".
I believe Bitcoin will do well in 2018, but there will be growing pains. I see an even greater future for the blockchain and similar technology.
According to Wikpedia, which I trust more than either governments, financial institutions or the Federal Reserve:
"Fiat money is a currency without intrinsic value established as money, often by government regulation. It has an assigned value only because the government uses its power to enforce the value of a fiat currency or because the exchanging parties agree to its value."
Just think:
- The purchase value of ONE 1908 US dollar is only .03 CENTS in 2018. The US dollar has lost 97% of its purchasing power.
- The the longest lasting fiat currency (British Pound 317 years) is now worth .5% of its original purchasing power (-97.5%).
- The average life expectancy of a Sovereign Fiscal Currency is 27 years.
- In 1971 when Nixon severed the link of the US dollar and gold: 1oz of gold = $35 US Today Feb 7, 2018 1 oz gold - $1,340 US.
Starting in 1933 the government, Federal Reserve and Financial Institutions have created the present situation. The losers have been the middle class and the poor. The winners have been the government, Federal Reserves, Financial Institutions and the Rich.
These winners from the past will fight in anyway they can to keep their power and financial position. As a senior I am more than willing to give Millennials a chance to create a world that is more fair for the poor, middle class and 2 billion who do not even have access to financial processes. Too many humans have been ignored by Goldman-Sachs and JP Morgan as unworthy clients.
If the blockchain can create trust among all world citizens through mathematical protocol, distributed consensus and cryptography, then we should be allowing for its evolution, not trying to kill it. Finance is the first industry to experience this disruptive technology and is going through growing plains. Many will follow and purchasers will benefit as the cost of middlemen decreases.
The first Ford Model T was not perfect and it scared horses, individuals. employees and many businesses that catered to transporting goods, services and people. Laws and regulations where instituted to kill the new technology but thank God, we now have the electric car.
Bitcoin has its faults and will eventually disappear just like the Model T, BUT it is not dead yet and future models will continue to improve life for the majority of people.
Never before has the Luddites been able to stop progress.
I am extremely interested in the potential behind the Blockchain and Hashgraph, BUT I have yet to purchase any Cryptocurrency. I am still learning and appreciate hearing all opposing points of view.
2018 is going to be bigger than 2017 for crypto. Anyone who says its over doesn't understand the different technologies behind the many different types. Yes there are a lot of shitcoins out there that are plaguing the market and yes Bitcoin doesn't really have any real-use case right now but there are some great projects coming about that are going to be here to stay. 2018 is going to be a year where we see more and more projects actually solve real world problems rather than just have big plans and big ideas.
So are the big boys that got in early still hanging on or are they selling off? I assume some will still have a capital gain if they sell now if they got in early enough and those that got in at the all time high a capital loss?
What's going on with what the investers are doing with their shares?
I sort of lost interest after I waited so long that price became unaffordable for me to get in. At one point I was kicking myself.
I haven't taken the time in the past couple of weeks to follow it as I usually do other than hearing the generic stuff (i.e. it crashed) So are they selling off their shares or some of them to take some profit?
Are they betting on the price dropping more?
Short selling?
Are they buying or waiting a bit to buy in at a lower price hoping it might go up again (at least some)? What are the majority of investors doing? The scoop?
Are these all stupid questions? ;-)
Thanks for the update information Dean. I always enjoy reading about what is going on in these areas. I do agree when "The U.S. economy is strong, so goes the rest of the world".
Good information Dean,
Was wondering about crypto currency, guess if just depends if the US dollar keeps strong....
Cheeers Jae
Well, they say that the FED will keep pressure to raise rates to keep a lid on any inflation fears. That will keep the economy on the right path for 3%+ GDP as well as keeping the Dollar strong and most Commodities in a good position (Gold/Silver/Oil) etc...
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Hi Dean,
well the real TRUTH will never be heard...
Bitcoin was invented( the technology) by the US Gov. and not by anyone else. What the purpose behind it...well that's impossible to know!
But going CASHLESS is the future...WHEN and HOW that will take place is the big mystery!
Its never what is seems to be.
Have a good one!
Tom
Well it was in 2009 an unknown person going by an Alias Satoshi Nakamoto started it. Where he comes from and his nationality is unknown, so we do not know for sure the origin. Believe this, if the US Government started BC and wanted it implemented for real everyday use, we would see it used worldwide, Every Day.....
If the US Government wanted us to know these things...they would NOT have so many agencies in place to hide the truth from the American public!
Governments all around the world have forgotten their REAL purpose in life...to SERVE the public ! Agree?
As a former (also) journalist I truly know that 95% of the crap we watch or read in newspapers is what they want us to believe, NOT the truth, by a long shot.
We will only KNOW when everybody knows...so basiclly when its too late. For what too late?
Well use your imagination...
Have a great weekend!
Tom