March 29, 2024

Cryptocurrencies: a myth or a new reality

Just now, a friend advised me to write a post on a hype topic such as cryptocurrencies and bitcoin. I'll try to explainmy thoughts on paper that I have for yearsSo 5.

Cryptocurrencies: a myth or a new reality

I warn you right away, don’t be offended, it’s minepersonal opinion, I have never owned cryptocurrencies, and I don’t advise you to. Although I personally know several people who have made a fortune from this (though mainly in the field of mining and the sale of goods for mining). I know even more people who lost money by selling a car due to infrastructure risks (the exchange closed or the keys were stolen); there were many of them in the gym a couple of years ago.

From a purely scientific point of view, cryptocurrencies areWonderful. It’s high time to remove the layer in the form of global banks, which charge huge commissions for changing bytes in the database. Another thing is that the world’s central banks and country leaders will never give a monetary instrument into private and incomprehensible hands, this will kill all economic relations. But blockchain technology itself is a useful technology for humanity.

From the investor's side, my opinion is the samethe classic Warren Buffett. Current cryptocurrencies, even though their quotes are jumping like a mountain goat, have no fundamental value today. Buffett's quote "Bitcoin is an illusion that attracts charlatans."

If you issued 100 virtual coins, 99you took it for yourself, and you bargain on one yourself, raising quotes along with the crowd - this still does not mean anything. Yes, today you can pay for some product using cryptocurrency, but its price will be based on the current value of the cryptocurrency in dollars / euros / yen, or is one of the businessmen ready to sell goods bought for hard currency for some unknown reason?

Cryptocurrency speculation is like a casino orhorse racing bets. By the way, last summer I was in a casino in Minsk and doubled the deposit there (my friend tripled it altogether), but this is a separate story and not an individual recommendation of gambling (if you are interested, I will write a post about how to increase the likelihood of playing at a casino, although the main thing is to have fun and excitement).

Cryptocurrencies: a myth or a new reality

These are the thoughts out loud - if any of youa professional and makes money from this - you are cool guys, don’t be offended, I know them too. This is simply an Opinion from a private investor in assets whose price is at least somehow fundamentally justified.