BitCoin : All that glitters is not Gold
Spoiler: This post is about discouraging you over investing on any Cryptocurrency.
History: Back in 2013, got an invitation to present about the Cryptography behind the BTC on a Conference. (you can find the presentation at the end of this post, if you're interested on what and how of BTC)
Due to the spike in BTC price, i got some calls from my friends on getting some expert advice. So, thought of writing down it as a post.
Am not going to predict the BTC Value, since i don't believe it's core existence. Judge yourselves with the articulated reasons below.
Reasons: Why you should not invest in BTC or any cryptocurrency?
- Top most of the reason, there is no backing like federal bank or anything behind BTC. it's just electricity wasted on generation of the so called "BTC". It leaves you with none answerable for either hike or drop of the BTC price. Even nobody knows who did invented it.
- BTC price is defined purely based on demand and supply. It's nothing different from a "GamerScore" which also doesn't possess any monetary value. BTC is priced without any factor apart from the "Demand" (by a blind crowd). The Demand is only based on it's current track record.
- Security of the BTC by definition and technology is highly secured. But, due to manual errors BTC got stolen in a massive scale. 1/16 BitCoins minted got stolen or lost.
- Anonymity offered by BTC just helps the thieves (either real thieves or tax evaders). It's very secure way for collecting money from victims evading law agencies.
Only positive outcome I see out of the BTC is, the BlockChain is having the possibility of disrupting the Banking sector.
Director at Inforiver
7 年Some other facts around BTC: 64 percent of the 12 million bitcoins never part of any transaction. Each bitcoin transaction now costs around $7.30 to process (will impact heavily after mining is complete). 1 out of 21 million max limited BTC lost in heist. Any other crypto currency can be easily traded only by using the BTC
VP - Operations at Lumel
7 年While everyone is caught up with the risk to reward aspect of the crypto the underlying usage part of it is being overlooked. The crypto currency truly is here to stay and it certainly does make life a lot easier while transacting. Its needless to say that it is much easier to deal with and the fees and charges are far lesser and certainly challenges the banking structure.The bitcoin may not eventually be the chosen currency for transacting as it is attracting attention for all the wrong reasons and there are many more that are competent to fill this space and it'll be interesting to see how it'll evolve. One thing for sure investing in crypto OR not, it is going to be an interesting disruptive change.
Architecture and Tech Leadership @ Adobe | Web | Hybrid Mobile App | Javascript | Full stack | Cloud | Serverless
7 年Hanush H N. Check this out.
Founder of Hurley Piano.
7 年The first global currency. An incredible technological achievement. It can be traded anonymously across all time zones in all jurisdictions. Crypto never sleeps. This $200 billion asset class emerged without Wall Street, without the VCs in Silicon Valley. This audacious project deserves attention and study. It changes the world with each second and very soon we will wonder how we lived without it.
I would have an mixed reaction to it. Firstly If you talk from just the bitcoin perceptive, it does hold properties mentioned above but still people bet on it for main stream investment like how people bet on stocks. Not all who invested knows it's technology. It could be an early born company which might be a potential multi-bagger so it is worth to ride the shift considering only 100% to lose but 1000% to gain. Then there are regulators and Governments who would want to make money and will come up with pseudo-centralised system trying to make cash along the process turning it similar to a currency. Finally the technology as such shall live as more companies and Enterprise comes up with integrating it with various industries. Various good solutions have been out already Every multi-bagger was once a penny Stock and the smartest one is not the one who does not invest in it but the one who exits it on time even if it's going down. Ride the tide along than to worry about Tsunami