I was on Kerry Lutz's show and we discussed, among other things, the Cryptocurrency market and how it's eerily similar to the Dotcom bubble.
None of them make money (because, they're well...currencies)
"New technologies" and fancy tech talk are the reasons they have value.
If you don't understand it, don't worry, I guess it's just over your head.
Oh yeah. I almost forgot.
There's also 970 of them.
6 comments:
I have 2 btc and have picked up some litecoin miners on the cheap. I"ll keep you posted on how this goes.
It's worthless when the electricity is off.
Crypto is a case where the tech is more important than the current standing of the players. BitCoin will have a shot only because it has first mover advantage. Ethereum will probably be a player because they are more a platform to build a smart transaction system rather than just a coinage play. Everything else is probably a crap shoot.
The other cryptocurrencies that are gaining prominence these days are designed to be a direct threat to Bitcoin. You see, Bitcoin's strength is that there is only a limited quantity of them that will ever exist. They can't be printed to infinity. However, if other cryptocurrencies take hold and over take Bitcoin in value or popularity it will be the death of Bitcoin (and all cryptocurrencies) since it will then become evident that although Bitcoin is limited as to quantity there is no limit to how many new cryptocurrencies can be created. Some people already know this (at least subconciously) but since Bitcoin has remained the dominant one by far the reality of it has not yet sunk in. If people are willing to just jump to the next fashionable cryptocurrency that comes along Bitcoin will become worthless. Who wants to miss the boat on the next big thing? Who wants to be stuck with something that is falling out of fashion? That's the real reason behind the big push on etherium and some others.
I don't believe that Bitcoin is secure. If it was then why does the wallet program (on your own computer) show you that there are incoming transactions for your account before the 'block' containing that info even gets finalized and released into the blockchain and before it reaches your computer. There must be some sort of secondary connection going on at all times. The only cryptocurrency that I've seen that doesn't seem to alert you before hand that a transaction is incoming is DEVCOIN. Now, I'm not an expert on Bitcoin so I may be wrong; but someone should bring up the matter with those in the know.
The other cryptocurrencies that are gaining prominence these days are designed to be a direct threat to Bitcoin. You see, Bitcoin's strength is that there is only a limited quantity of them that will ever exist. They can't be printed to infinity. However, if other cryptocurrencies take hold and over take Bitcoin in value or popularity it will be the death of Bitcoin (and all cryptocurrencies) since it will then become evident that although Bitcoin is limited as to quantity there is no limit to how many new cryptocurrencies can be created. Some people already know this (at least subconciously) but since Bitcoin has remained the dominant one by far the reality of it has not yet sunk in. If people are willing to just jump to the next fashionable cryptocurrency that comes along Bitcoin will become worthless. Who wants to miss the boat on the next big thing? Who wants to be stuck with something that is falling out of fashion? That's the real reason behind the big push on etherium and some others.
90% of America dies if the electrical grid goes down. The valuation of all items would change dramatically
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