E Cryptocurrencies? Not Yet!

There are ten compelling reasons why I can't yer bring myself to invest in cryptocurrencies despite all the compelling reasons for getting out of the dollar.

Reason 1-- I've already touched on the "investment" angle. Dollars used to buy a cryptocurrency is not only an investment, but a speculative one that looks too much like a gamble.

Reason 2-- There are well over 700 cryptocurrencies, which is bewildering enough, but it's likely that even more of them will be coming on the market to test the waters. At this point Bitcoin is leading the pack, but if superior products come on the market, Bitcoin could become an also ran. At this point there's too much congestion...too many horses on the track to make a bet.

Reason 3-- I think we may see more concerted attempts by the Federal Reserve, Treasury Department to destroy or to regulate cryptocurrencies. It's obvious that the Fed and Treasury are quick to sic the SEC pit bulls on to any medium that offers exchange opportunities outside the dollar. The government is always hostile to anything of which it can't tax or become a silent, controlling party. And I'm sure everyone has heard rumors that the Fed would like it's own cryptocurrency.

Reason 4-- It's still early in the cryptocurrency era. The term was coined less than twenty years ago, and the field is in such a developmental frenzy that it may take another ten years for the start-ups and upstarts to settle down into a consolidated industry.

Reason 5-- The sheer number of cryptocurrencies makes it unlikely that most of them will enjoy commercial use or success. Merchants aren't going to want to process transactions involving 700 different currencies.

Reason 6-- Just as Diner's Club sparked the debit and dredit card explosion years ago, Bitcoin has done the same for cryptocurrency platforms. Today American Express, Mastercard, and Visa dominate the credit card industry, and in the years to come I expect hundreds of cryptocurrencies to consolidate into three major players... which are yet to be determined by elimination or merger.

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Chee Hin Teh 3 years ago Member's comment

thanks for sharing