5 Harsh Truths No Crypto Investor Wants to Hear

Discussion in 'Cryptocurrencies' started by Nobert, Nov 29, 2019.

  1. Nobert

    Nobert

    Published on 17 February 2019, 15:00 TC
    Author
    Greg Thomson


    Screenshot (385).png
    Crypto investors need to come to terms with some harsh truths about the state of the industry. | Source: Shutterstock




    There’s no shortage of optimism in the cryptocurrency and blockchain world – so much so that cold, harsh truth starts to become a rare commodity.

    With that in mind, let’s take a sobering look at five truths cryptocurrency investors don’t want to hear, no matter how much they should.


    1. In a World of Bitcoin Experts, Nobody Knows Anything

    Screenshot (387).png

    In the cryptosphere, most experts are self-appointed. A select handful of personalities have won the trust of the average crypto enthusiast, but those are few and far between.

    The highest rated ICO experts somehow emerged at the same time as the guinea-pig trials that were initial coin offerings themselves. Trusted resources for “ICO ratings” often turn out to be the blind leading the blind, or worse – a self-perpetuating feedback loop where hungry demand from readers inevitably pushes the project ratings higher and higher. Twitter influencers turn out to be nothing more than people with the oldest accounts, who suddenly added “crypto” to their handle.

    We spend much of our time trying to discern the true motivations of CEOs and self-proclaimed blockchain leaders, but perhaps we should be trying to discern our own. Many will claim they’re here for financial success, but the fact is the surreal phenomena of clueless blockchain experts and influencers could not exist were it not for the intense doses of “hopium” that summons it.

    Leading onto the next harsh truth…

    2. You’re Here Because of Emotions, Not Shrewd Financial Acumen

    Screenshot (389).png

    We’re not here because we made the rational decision that this was the best way to succeed – it very clearly isn’t. | Source: Shutterstock

    I fully understand the bold, adventurous pioneering spirit of many who are drawn to the crypto space. But just like those pioneers who took to the hills in search of gold during the California gold rush, the quest for profits may come in secondary to the pursuit itself.

    In other words, we’re not here because we made the rational decision that this was the soundest way to succeed – it very clearly isn’t. I suspect most are here for the buzz, the dream – the thrill of breaking previously uncharted ground with our picks and shovels and dreaming of what might emerge.

    Dreams might be all there are, however, as many gold prospectors in California learned the hard way, while the peripheral industries they relied on took full advantage of their plight.

    3. Most ‘Expert’ Opinions are Bought and Paid For

    Screenshot (391).png

    In the high stakes world of crypto trading, many “expert” opinions are bought and paid for.

    Most of us will have become familiar with the saccharine tone of the crypto press release, which is useful since too few news outlets are honest about which of their articles are paid for and which aren’t.

    But what if the same financially motivated deception manifested in the form of comments on message boards, tweets, forum posts, and Telegram groups? Bots have been a hot topic in U.S politics in recent years, and there is strong evidence that much of the cryptocurrency market is swayed by automated trading bots.

    However, I’m talking about bots of a different kind: human bots – people who are paid to go out and cheerlead for whatever scam coin is being pushed at the time. Advertisements for these jobs can be found all over race-to-the-bottom freelancing sites like Upwork and Freelancer, and a quick glance at community hubs like the Bitcointalk forum reveals the extent of their outreach.

    This isn’t a crypto-specific failing since the same phenomena can be seen in Amazon reviews, as well as any internet-based scenario where someone has something to sell. But it may surprise some first-timers to learn that they really can’t trust much of anything they read online in the crypto space.

    4. Decentralization is a Utopian Pipe Dream

    Screenshot (393).png

    We may pretend that we want decentralization, but most in this industry really don’t. | Source: Shutterstock

    You can lead a horse to water, but you can’t make it drink. There’s a giant gap between what we think is good for us, and what people actually want. People will say they want more autonomy, authority, and self-control, but when they realize that such things also require discipline and responsibility, then suddenly decentralization becomes something to be feared.

    As echoed in this contrarian article, there might just be a reason why human beings have consistently organized themselves into ranked hierarchies since time immemorial.

    I imagine a lone, comedic figure fighting desperately to bring decentralization to the masses, and after painful trials and tribulations he presents his technological saving grace to the people only for them to ignore it, and scoff at his naivety.

    5. Crypto is a Bubble: At Least 95% Of All Projects Will Fail

    Screenshot (395).png

    Even crypto bulls believe that almost every project will fail. | Source: Shutterstock

    For an analogous situation, we can look to the booming growth in the cannabis stocks sector, the similarities between which produced the line: “Cannabis is the new crypto.”

    Just like crypto, the harsh reality is that a vast majority of these stocks will either fail or turn out to be the work of opportunists. That’s the opinion of CIO of Portfolio Wealth Advisors, who told Yahoo Finance last year, at the height of Tilray Inc’s 872% growth:

    “Good for you if you bought Tilray. … Good for you if you bought Canopy Growth…But we’ve got another 500 securities out there, and 90% of them are frauds and just aren’t going to make it.”

    Yahoo Finance currently lists 24 cannabis stock tickers, while other sources place the number of companies in development at 64. If Munson is correct, that leaves around six firms that might prove somewhat viable in the aftermath of the inevitable cull. As for Tilray, six months on from its peak, the stock price has sunk by close to 65%.

    The cryptocurrency space contains 2,068 coins and tokens according to CoinMarketCap, and if the head of global research at Bitwise is to be believed, 95% of them are doomed. Matt Hougan told Bloomberg earlier this month:

    “There are 2,000 cryptocurrencies out there: 95 percent of them are useless and will die a painful death. The sooner that happens, the better.”

    That means just over 100 cryptocurrencies might make it out of 2,068 – a larger target to aim for than the pot stocks, but also one with a greater chance of failure. Here we have the very definition of a bubble, with everyone trying to catch before it pops. However bubbles aren’t all bad, and according to the Bitwise research leader, the bubble may help in the long run:

    “It did the same thing that happened with the internet, which is it attracted a huge amount of talent. It did bring a lot of capital and interest in development to the ecosystem…”

    Looking back to Tilray Inc, despite sinking for the last six months its valuation is still 349% higher than it was at the commencement of its $17 per share IPO. Hougan leaves us on a positive note, looking forward to what might emerge from the cull that wipes out 95% of the altcoin market.

    “But from those ‘ashes’ will emerge important things. Just like from the dotcom ashes emerged Amazon, Google, and Facebook etc.”

    Disclaimer: The views expressed in the article are solely those of the author and do not represent those of, nor should they be attributed to, CCN.

    Source : https://www.ccn.com/5-harsh-truths-crypto-investors/
     
    Last edited: Nov 29, 2019
    athlonmank8, Sprout, birdman and 2 others like this.
  2. clavell

    clavell

    this applies to everything in life:

    1)No one really knows shit.
    2)human are not robots and act on emotion
    3)all experts are paid. Communism failed
    4)logistics in practice ( not in a vacuum theory) requires hubs
    5)95% of everything fails.
     
  3. henry76

    henry76

    There will come a time where young lads are launching thousands of crypto currencies from their bedrooms , take a crypto, copy it ( as many times as you want ) and launch , when you realise supply of crypto is all but infinite , it's going to be very hard for them to maintain any sort of price .
     
    damon_achey and Nobert like this.
  4. henry76

    henry76

    Thanks Nobert
     
    Nobert likes this.
  5. Nobert

    Nobert


    Outdated statement, by people who had no Google, drunk water from goat skins and fought battles with pikes.

    socrates-know-nothing-web_orig.jpg

    But the greed in masses , remained the same. Also the reactions, once their beliefs gets questioned.
     
    Last edited: Nov 29, 2019
    dozu888 and nooby_mcnoob like this.
  6. Right on the "Money!" (or crypto). Thanks for posting!
     
    Nobert likes this.
  7. Nobert

    Nobert

    An idea came to me, why not to give, for some of the folks in here, their own medicine.

    @henry and @formikatrading - my pleasure.
     
    formikatrading likes this.
  8. clavell

    clavell

    this one walked around, asked dumb questions, and pissed off even dumber people, especially people with pikes. Then he killed himself. true story
     
    Nobert likes this.
  9. Nobert

    Nobert

    lol ! Thanks for the laugh,

    Still, he was one of the smartest among those dumb,

    because the question is more important than the answer, while those dumber folks with pikes, had no questions, neither answers, if there was any given.

    They idolized gods without any rationale, questions or answers, as internouts idolized BTC.

    Have a good weekend Clavell,

    Nobert out.
    (01:00 am)
     
    Last edited: Nov 29, 2019
  10. MrMuppet

    MrMuppet

    I just love you guys :D
     
    #10     Nov 29, 2019
    johnarb and Nobert like this.