Hi Guys, I'd like to answer any of your questions on Crypto Currencies ฿ |⧫ |Ł

I wouldn't call it a bubble. This time the market will be rolled out the to masses and this creates supply and demand never before seen in the industry. So fast growth, yes. Bubble? No.

 

Surely it's hard to have fast growth and not a bubble form?

 

Financial markets are shifting to the new trust economy. This is just the beginning. There will not be two different worlds only one. Currently fiat is popular and widely used but a recession of unforeseen size is coming. It won't be a bubble as there will not be anything to cash out to. Because cash it self would become obsolete and any incentive to do so would disappear. Crypto would be a life saver to billions of people since the financial institutions would fail with this coming recession and they would need to put their money elsewhere out side the hands of centralized banking. Bitcoin at $1,000,000+ is not a fantasy. The dollar retaining it's original value and buying power is a fantasy. There won't be a bubble as this will be peoples lively hood and the crypto currency can be put for daily use and will not need to be liquidated as many businesses are starting to accept bitcoin and other currencies directly. Blockchain was meant to bypass the middle man. In this case it's the banking system. More importantly crypto bypasses the dollar.

 

What will cause this massive recession? Please fill me in.

Bitcoin at $1,000,000 will mean its market cap is trillions, there is probably more chance of you winning the lottery a few thousand times over.

Crypto will be used potentially by very niche, specific things but won't ever be mainstream.

thoughts?

 

What will cause the massive recession? firstly recessions are cyclical, secondly we are 21 trillion dollars in debt. Third, there are so many bubbles about to pop the biggest being, healthcare, the insurance and hospital bubble. We are living in a world of floating economies. We overstate our artificial growth and GDP which is funded by debt. China injected billions recently into their economy to keep it a float. Let me put it to you this way. A healthy economy does not need to take out massive loans and project the loans as growth.

The current market is worth trillions of dollars. But when it transitions into crypto that money will be changed into BTC (other currencies but mainly BTC) . Govt's all over the world are preparing (passing legislation in favor of crypto) for this transition into the new crypto driven market and away from the dollar. Also crypto is gaining traction and is going to be mainstream not sure why you'd suggest it wouldn't. Look at Venezuela for example they have their own govt issued currency and so does Dubai. US itself said may do the same. 1 in 3 Kenyans have a bitcoin wallet. South Korea and Japan are huge on crypto so is China. With your line of thought it's like, when the first light bulb was invented you would say "why do we need a light bulb when we have candles" "I don't think it will ever be mainstream because I don't think every house would wire electricity to power the bulbs and I don't think the govt would build infrastructure to provide electricity on a massive scale". This is not a niche let's get that straight. This is a growing market and this is the future. It is already going mainstream and will be an alternative to the underbanked people of the world which is in the billions. Also it is mainstream as we look at amazon and other major companies (everything from gas stations to restaurants) accepting crypto as payment.

Bitcoin to a million isn't impossible. People said it wouldn't go beyond $100 then $200 then $500 then $1,000 then $5,000 then $8,000 then $10,000 then $15,000 etc. Laws of supply demand dictate the price. The demand will increase when the flood gates are open for a larger global audience to participate. In the beginning it was not user friendly but it's getting easier to participate.

If anything I will ask you to provide the proof as to how this will never be mainstream and will only be niche lol.

 

Bump

 

What causes cryptocurrencies to fluctuate this much? Is it simply supply and demand or are there other factors involved?

 

Only just seen your reply.

You've made some good points; the global economy is going down a rocky road just now.

But I just don't agree that BTC will be the answer. Also, there is no chance of BTC reaching one million. You are seriously saying market cap would reach 21 trill? Ludicrous. If anything, in a recession the gov(s) would tighten regulation over crypto if they foresaw this mass adoption, since they would monetary power (isn't a bad thing, its what helps us out if recession).

And you don't know much about China if you think the gov. Will allow its population to use an unregulated currency (the selling point of crytpo).

Sorry imo it was the first step to something interesting, the use of blockchains, which will be used in very specific ways, but never mainstream.

 

Bitcoin is not going to be the only solution but it will be a player in the future. Bitcoin to a million is possible just not as much as btc to 100k-500k (more likely). The thing is during a recession or at least the one coming of this size, governments won't have any control of crypto since its decentralized it can operate outside any controls set by govt. I do know about china, I advised on a property asset backed ICO for the Chinese even when ICO's were banned in China the Chinese were hungry to invest and they did all while slipping past the nose of the Chinese Govt. Currently China has restricted it's citizens from taking out more than 50k usd a year. Chinese are the most aggressive investors in the world. They don't care for the govt's restrictions and as hard as the Govt tries it's not able to prevent Chinese investment from coming into crypto. They also participate in ICO's and crypto by going through Hong Kong which is a separate autonomous region which is still a part of China. If their Govt didn't place the 50k a year limit, the world economies would collapse and so would the dollar value since currency would flood the market. Blockchain will be mainstream. Crypto will also be mainstream. It is currently a crypto war to see who come out on top.

 

I guess we both disagree. But it'll be interesting to see how it all unfolds.

 

Bump

 

What do you think about stable-coins? Since the instability is what has kept away mainstream investment?

 

Well, instead of "instability" lets call it volatility. If there was no margin for profit, especially lucrative margins like 10,000% profit I don't think crypto would have ever gotten people interested. My main view is stable coins are not vehicles of investment, they are not meant to appreciate in value so their demand in the future is not going to be as attractive because it's not really safe if you think about the real purpose of crypto is to move away from centralized banking and the Dollar. When the Dollar fails so does the stables coins (tether) associated with it. Bitcoin as volatile as it maybe. Is the more opportunistic and attractive coin for the large audience. I don't feel people will go out of their way to pay a dollar for a virtual dollar with no returns or mass acceptance or adoption globally like the dollar. And if they were to buy gold, they would just buy gold straight and not a coin claiming to back it. The US dollar has and other currencies have been on a decline as they have lost much of their value in the past decades. This will reflect on the stable coin. Since it's buying power is pegged to a dollar (for example). The dollar might be the status quo today but it won't be the case tomorrow.

So basically a stable coin is like re-inventing the wheel instead of a dollar we use a currency worth a dollar instead of an actual dollar lol. Why the extra step if there is no extra benefit?, Also think about this if I have a dollar its backed by the full faith of the US government. Also a stable coins value is pegged to the dollar but the coin itself is backed by a company with questionable backing. I was part of a real estate backed coin/token. There was a similar flaw there as well. They mentioned the coin is backed by the properties but what happens if your coin's are backed by $1 million in asset and suddenly the coin (as alt coins do during ICO's) jumps from $1 million (at $1 a coin) to $100 million ($10 a coin)? where does the company have $99 million asset readily available to back the coin? tether faced a similar dilemma. you see the flaw here is that for one there is no need for a coin like that because it's an extension of the currency itself. On the other hand stable coins would be great in areas where they have cash shortage and need quick access to currency which is stable and equal to the value of popular currency like the Dollar or Euro. Places like Venezuela where they have hyper inflation would benefit from stable coins since it can bypass sanctions and be a solution for currency alternatives in a country where their own currency is worthless.

I want you to think about this. If stable coin's intrinsic value is tied to an existing currency such as the dollar. What is the intrinsic value of the dollar? what is it legitimately worth? it has no form of asset to reflect it's value so basically it's worth less and we all pretend its worth something but when you have a coin tied to the value of something with no real value what is that worth? (for example: you go into a store with 1 stable coin worth $1 -> you buy chips worth $1. But see the flaw? chips (real tangible value) is worth a dollar -> bought by stable coin (worth $1) -> but what is the dollar worth? what is it's value?

More than stable coins, I believe securitized tokens/coins (STO's) will be the standard for mainstream use. These would be coins tied to real value which would have lower risk and also decent returns in which people can have more trust as these coins and their companies would have to go through regulatory process to be securitized. The reason it hasn't gone mainstream for the most part is due to distrust in the companies who had thousands of ICOs and took in millions of dollars without delivering a product. STO's would be safer and more attractive than ICO's.

 

Bump

 

Bump

 

bumping this for you

 

Thanks! have been very busy haha

 

BTC , Ripple , Ethereum , price predictions in one month time?

 

Hard to say and I am not going to take up the position of a fortune teller haha, but what I can say is overall I feel it will slowly go up.

 

what do you think of that whole Bitcoin Cash or whatever that sprung up