Cryptocurrency is one of the hottest topics right now. People are hugely divided on its relevance and place in the investment world. I have always held to the belief that people decide the value of all investments. I hate stocks, but for others, that is a hugely successful investment.
What some love, others will hate. That is the beauty of the free market. Let the investor decide the value, not the powers that be. I will always support the free market and the free market determining what is perceived as valuable.
This is one of my biggest complaints about stocks and bonds. They are manipulated. Governments prop them up as the bread and butter of the investment world. I have seen some people really succeed with them, but don’t be misled to think that’s the norm.
I love following Doug Casey. He has written multiple books. He is the original International Man. I recommend checking out his websites: https://internationalman.com/ and https://www.caseyresearch.com/ There is a lot of good resources at both sites.
Doug Casey has said that cryptocurrency has a big “tech boom feel” like that of the dot com bubble. I agree with him. It has grown tremendously over the years and the question is whether it continues to grow or will it burst. The question is not will it burst, but when?
Now every crypto investor is loathing my existence right now. I am not saying that Crypto isn’t a great asset or a great alternative to fiat currency. What I am saying is that things rise and they also fall. Crypto has already seen multiple corrections. The question is when will it see a huge hit.
I think cryptocurrency is still going to expand, and expand in big ways. I think we will see even greater heights, especially with Bitcoin. We aren’t at a crash yet. Maybe a correction, but not a crash.
I think it will be bigger than the internet. The time is coming though where crypto will be challenged in a huge way. One thing that I have noticed over time is that governments, especially western governments, do not like competition. Let’s be honest that fiat currency won’t want the competition.
I do not see the United States wanting to have competition from crypto unless they can strictly control it. If you want to participate in the crypto boom for the long term that will mean two options. The first is to work with the government to have them successfully regulate your investments, which I am never a fan of because they will diminish the return on your investment with more and more taxes.
The second option is to find other nations that are willing to accommodate the crypto world with too few regulatory restrictions. I think smaller countries will be more open to this model. What is interesting is even as I write this post, El Salvador may become the first nation to accept bitcoin as legal tender. Investors will need to explore options with nations like El Salvador. I also think that you will see more corporations holding crypto overseas.
Timing is everything. It is hard to predict precise timing. One thing that I have always promoted is investing in what you love. If you love crypto, you will need to be prepared for the big crash.
The word crash might be misleading. I am not sure it will be an organic crash as in more of a government-imposed crash. Again fiat currency and western governments do not like competition. They will impose a large-scale “crash” to further regulate or make it illegal to own. Whatever the future holds, you will need to be prepared.
The truth is that money has had many different forms throughout the past. Money has had many different forms and constantly evolved. The problem is that even though money should continue evolving, I am doubtful it will. Government money is not going to want competitors.
Who controls the money? Is it the government or the Central banks? I would argue it is one and the same. They are so interconnected. Central banks print government money. The Central Banks exist because of the government and vice versa. They are codependent and exclusively exist to benefit one another.
Western governments and central banks do not like crypto currency. They especially hate Bitcoin because people have used crypto to reclaim money outside of the fiat currency system. The monetary system is broken, but few are willing to admit it. So, we keep watching as the system continues to be further rigged.
This is the benefit of cryptocurrency. This is why there is a boom! People love reclaiming money outside of the rigged system. This threatens the central banks and governments.
What I find interesting is that while I write this the price of cryptocurrency is both rising and falling. It is booming and correcting. Is this the crash that I am referring to? No!
Central Banks are truly threatened. It is just a matter of time before they create their own digital currency to compete with cryptocurrencies. The real boom asset is the Blockchain technology behind cryptocurrency. Governments around the world will utilize this technology to position themselves.
This competition won’t end well for cryptocurrency. The battle lines will be drawn when cryptocurrency challenges fiat money. Competition is good in the free market, but not in a government-run monopoly. The central banks will petition the governments to either further regulate, reform the cryptosystem, or outright illegalize it.
The advantage to cryptocurrency is the technology as stated earlier. The reason is that it creates trust outside of the banking system. This technology though will and can be used by central banks and governments alike. The technology has been used to create a system outside of the control of the central bank's money printing and government-run monopoly.
Bitcoin in many ways is the crown jewel of all cryptocurrency. Bitcoin is the powerhouse behind cryptocurrency because it is the only true decentralized asset and currency within the sector. The others aren’t decentralized but still pose a threat because they push people to use an alternative system outside fiat currency. The government and central banks will use it to centralize transactions.
I do not consider myself a Bitcoin or cryptocurrency expert though I love investing in it. I do love finance and love following financial thought. I also love history. History shows that the powers that be do not like competition.
The time is coming when central banks will work with governments to force their digital currency to be the only currency. This will result in a government-imposed crash. The investors who love crypto will either need to embrace the reformed system or look for safe havens outside of the western world. El Salvador is a perfect example as the country's president, Nayib Bukele, is looking to recognize Bitcoin the same way as the US dollar, which the country currently uses. Investors are going to have to look for safe havens outside of the western world, such as El Salvador to protect their investment.
Blockchain technology is the future. This technology is changing the world. Maybe both in good and in bad ways, but as an investor, it will be incredibly profitable moving into the future as this technology has the potential to continue to revolutionize money.
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