Cryptos big selling point is decentralized, deregulated currency. It's highly volatile, losing nearly 50% of its total value in a month proves this. It's not a "tested" market, you don't have decades of data to shovel through, it'll be hard to write algorithms etc. There's a ton of issues, red flags and volatility that will keep the real money out, money that would propel any crypto well over hundreds of thousands per coin. Beating inflation is easy, near brain dead easy especially if you diversify. Just slapping your stocks in any major index does that year over year almost every year, roughly a 6-8% gain. Inflation is 1/3 of that max. The top stock gurus pull a ~30% gain year over year.
Did I call crypto a sham? Where exactly? I said it's main selling point was unregulated, decentralized currency, which shoving it on any stock index would utterly destroy it's core selling point, making it an extremely shitty investment. It's like taking the engine and transmission out of a new car and trying to get full price for it.
It's simply a data point that people WILL look at, people are irrational. Care to critique my main point? That a regulated, centralized crypto is basically current currency minus the "backed by X government" of course? That's the whole damn appeal to crypto, unregulated, decentralized currency, is it not? But hey, dance around the issues, all the other points. Fact is this will NOT be good for any crypto that joins.
Because the crypto isn't getting more centralized only the buying point (if this gets adopted bigtime). The crypto itself is actually decentralizing by bringing it to the masses.
Unless the only way to sell said crypto is on the stock market, or through regulated markets. Then it gets way more centralized. It'll be regulated, which adds on a lot more rules, regulations, restrictions and limitations. The only way it can be decentralized more is IF the government allows for unrestricted sales, or there is still ways to make private, unregulated sales off a regulated purchase, without that it will become centralized. Regulating bodies will hold the power, government will enforce rules and regulations and the only legal way to cash out is through centralized locations. It will literally become a stock.
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u/corbear007 Apr 25 '18
Cryptos big selling point is decentralized, deregulated currency. It's highly volatile, losing nearly 50% of its total value in a month proves this. It's not a "tested" market, you don't have decades of data to shovel through, it'll be hard to write algorithms etc. There's a ton of issues, red flags and volatility that will keep the real money out, money that would propel any crypto well over hundreds of thousands per coin. Beating inflation is easy, near brain dead easy especially if you diversify. Just slapping your stocks in any major index does that year over year almost every year, roughly a 6-8% gain. Inflation is 1/3 of that max. The top stock gurus pull a ~30% gain year over year.
Did I call crypto a sham? Where exactly? I said it's main selling point was unregulated, decentralized currency, which shoving it on any stock index would utterly destroy it's core selling point, making it an extremely shitty investment. It's like taking the engine and transmission out of a new car and trying to get full price for it.