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RE: Will Bitcoin and Cryptocurrencies Succeed or Eventually Crash and Burn.

in #bitcoin7 years ago (edited)

Thanks stevemcc,

Great comments. You are very reasonable. I am worried about new laws allowing the banks to treat us bank depositors as unsecured lenders. Derivatives get first priority now with FDIC insurance, which means the insurance can quickly run out in a crash leaving none of us depositors protected. The Banks can now do a Bail-in where they remedy their default position with depositors funds. In place of our money in the bank, they will give us stock in the worthless bank. Greece was a test run. (See James Rickards "Road to Ruin" book.)

Yep, cryptocurrencies are a crap shoot. My thinking is that regardless of what the mainstream news media tells us, the truth is that the world economies are in tremendous debt to the banks and the economies are failing. In a bank crash, people will flee to precious metals as a safe haven, but it will be too late, because investors following this trouble, who are ahead of the curve, will have bought up all the available gold and silver bars and coins. What's left? Cryptocurrencies will look more appealing, even if a bit risky. What other options are there if we can't trust the banks? Okay, hard assets.

Food for thought. (I hope I am wrong.) The issues are so complicated when you research, it is hard to know for sure how things will play out. Also, if the Trump administration has a plan to come out of an impending economic crash, they won't scare us by talking about it now.

Thanks again for great comments from you.

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I hope you're wrong too. It's the old "hope for the best, prepare for the worst" situation, and I wonder philosophically how much we impact the outcome by our own expectations. So I try to stay positive about it all, but also want to do what I can not only to prepare myself but to encourage others to diversify -- not just out of traditional savings, but in terms of earning income from more than one source and so on. A new world is developing before our eyes, and I believe it empowers the individual more than ever before. But if that's what is happening, then individuals will need to take a lot more responsibility for things, and I'm not sure how many people want that.

Thanks to you also for the great feedback. This is a good community to be part of as we navigate into this new era.

stevemcc,

On a positive note, for crypto investors, it looks like Ethereum may be a good bet right now. Lot's of companies investing in Ethereum applications with announcements coming out in the next several weeks. Also, Cliff High's (HalfPastHuman.com) data mining confirms same conclusion.

Thanks for the input!