An article you must read:
source: c n b c . com/2018/01/09/bitcoin-fascinating-because-of-risk-taking-fund-manager-says.html
"Ultimately, they have an intrinsic value of zero, and people are willing to change their careers, they're willing to speculate… If you go out to a group of people now where there are more than two or three people present, bitcoin comes up and they ask all of us what's happening with bitcoin or some other cryptocurrency."
I never bought any cryptocurrency and as a nonbiased financial expert I would recommend ANYBODY who owns any kind of cryptocurrency to SELL immediately.
The bitcoin bubble is bursting right now and every single cryptocurrency will soon be WORTHLESS because its intrinsic value = 0.
Without an exchange and a link to a REAL currency which is legal tender the purpose of any cryptocurrency is nonexistent, except the purpose to speculate with it. Nobody is seriously using a predefined quantity of units to pay with it. Neither the buyer of goods and services nor the seller of goods and services because of high price fluctuations respectively volatility.
You can model the real world into 2 scenarios.
First, if the prices tend to rise in value, the buyer of goods and services will not spend these units to pay with it. Otherwise he would not act rationally because something that is rising in value you do not sell and therefore you keep holding it. The seller of good and servies would like to accept. He would get a unit that is tomorrow more worth than today. So he can buy more goods and services with it. Perfect. But if only ONE party is not willing to deal then the deal will not happen. And under this circumstances the deal does NOT happen because the buyer will hold these units that should originally act as a currency.
And second, if prices tend to plump the buyer of goods and services has a strong incentive to pay with these units. Anybody would like to pay with something that is tending to have no value or less value. It would be always a good trade if the good or service you get for your worthless currency is worth more than nothing or is keeping its value compared to yesterday where the price for the good and service was the same but the value of the currency was higher if the value of pseudocurrencyunits is plumping. Otherwise he would not act rationally or just sell the units, too and the prices will decrease faster. But the seller of goods and services NOW will NOT accept these units (with crypto or without crypto) because is not selling real value for a currency that is becoming more and more less valuable. So therefore NO deal will materialize becaues the seller of goods and services will deny the deal. So the currencies originally purpose also in this second scenario does NOT come into play.
So the intrinsic purpuse of the so called (crypto or whatever) currency is NON-EXISTENT because under the condition of highly fluctuating prices as it is the case of any cryptocurrency due to its predefined quantity this currency will not be used. NEITHER from the one who wants to spend the currency to buy goods and services NOR from the one who is accepting the currency to sell goods or services depending on the scenario of rising or falling prices of cryptocurrency or any other so called currency or lets better name it "trading units".
Without the many exchanges for bitcoin and co. the bitcoin would be nonexistent in the news because it would have NO effect. No effect in the world of trading (of goods and services). The only trading that is happening is the trading with the currency itself and therefore any cryptocurrency has no social function.
The only reason why Bitcoin and co. are in the news is the fact that some trader who mined or bought these units for cheap could theoretically sell for high prices and therefore could make a huge profit. And because anybody on this world wants to immitate this, more and more people are joining the mania. 100,000 people daily open an account only at the exchange Coinbase, not to name the many other crypto exchanges. So yes, this is somehow a Ponzi sheme. Wenn no one or even only significant LESS people are willing to open a trading account (as a proxy for their real trading activities) then the prices will slump.
And because there is NO intrinsic value unlike to gold, the prices of bitcoin and any other cryptocurrency will slump to almost 0.
q.e.d.
You can bet on this. I am an expert in studying these processes. And do NOT to try to be smarter than history of events. You will fail.
But you can do whatever you want, if you do not want to listen to me, feel free to throw your hard earned money down the drain.
But do not cry afterwards if you lost all your money.
I just want to prevent you from losses.
Really - nothing against Bitcoin or Karbo but there more I think about this whole cryptocurrency thing the more I am getting desillusionated. Really.
They have heavy disadvantages and their errors are inherent to their system.
Either you try to improve the coin or it will fail. Thats my thesis.
Somebody told me this: "The finest win is knowledge."
And thats why I do not want to hold back with my knowledge. Its YOUR profit.
If you have a contrary opinion you can try to convince me. I am reading your response.
Happy trading !
