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Old 16th January 2018, 02:12 PM
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Default Cyptocurrency Mania Updates



The cyptocurrency bubble isn't just a bubble now. It has become a full-blown mania.

Moneycontrol has a section dedicated to cryptocurrencies:

Cryptocurrency - Digital Currency, Current Rate, Latest Bitcoin Price, Market, Charts, Trading - Moneycontrol

Reliance allegedly wants its own cryptocurrency:

https://economictimes.indiatimes.com...w/62468001.cms

Last week Kodak declared its intention to create "Kodak Coin" and its stock trebled.

https://www.cnbc.com/2018/01/10/koda...kodakcoin.html

People are throwing money into ICOs as if there is no tomorrow.

It is literally possible to raise millions from the ICO market with a 10 page offer document that has nothing more than a few paragraphs of tech jargon. No business plan needed, just promises. It is even worse than the dotcom bubble.
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Old 16th January 2018, 02:52 PM
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I studied this in detail and decided not to enter crypto since in the end only one crypto currency would survive, per country, and that too is a doubt.

There is no utility at the end of the day for most of these currencies.

The market for crypto is purely speculative & everyone who I know who is buying, is buying on the basis of the "Greater Foot Theory" in the sense no one wants to hold it but eventually wants to sell it for a profit and exit.

This is pure speculation and some one even commented it is a bit like the craze for Tulips which ended in a big bang eventually.

Eventually when you buy into an asset class, it is expected to have some form of returns. In the cases of common stock it is based on the share of profit for the company, in the cases of assets like debt it is the interest based component. In the cases of insurance it is protection from losses.

Crypto doesn't seem to have any end goal to it. At least not something which I have been able to understand.
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Old 17th January 2018, 01:15 PM
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Quote:
Originally Posted by entee View Post
I studied this in detail and decided not to enter crypto since in the end only one crypto currency would survive, per country, and that too is a doubt.
There is no reason why there can't be multiple currencies per county, but I too feel that very few crypto currencies will survive in the long-term.

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Originally Posted by entee View Post
There is no utility at the end of the day for most of these currencies.
Other than Bitcoin, most bigger crypto-currencies are needed for functioning of their underlying blockchains and thus have a utility. It is a different question how many of these blockchains will have users in the long-term.

Quote:
Originally Posted by entee View Post
The market for crypto is purely speculative & everyone who I know who is buying, is buying on the basis of the "Greater Foot Theory" in the sense no one wants to hold it but eventually wants to sell it for a profit and exit.
Agree.

Quote:
Originally Posted by entee View Post
Eventually when you buy into an asset class, it is expected to have some form of returns. In the cases of common stock it is based on the share of profit for the company, in the cases of assets like debt it is the interest based component. In the cases of insurance it is protection from losses.

Crypto doesn't seem to have any end goal to it. At least not something which I have been able to understand.
Well, that's why they are more comparable to currencies than any other asset - crypto currencies were supposed to be a medium of transaction, but people have started treating them as assets.

A rupee does not yield any return. A rupee kept in a safe keeps losing value every year.

Only after the rupee is "invested" somewhere, we get a return.

My own opinion is that Bitcoin will get replaced by a more efficient crypto currency in the long-term.

The current "Proof of Work" model used by bitcoin is extremely resource intensive and slow. Developers are working on "Lightning Network" to make Bitcoin faster, but I not sure how successful it can be.

Also in absence of any real use of Bitcoin, people may slowly start using other crypto currencies which have some kind of utility.
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