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There's no "investing" in crypto-assets. Investing means you would make money from the activity of an underlying enterprise, but with cryptocoin software you'r
by 0wing 9y ago
There's no "investing" in crypto-assets.
Investing means you would make money from the activity of an underlying enterprise, but with cryptocoin software you're simply buying a number in a database that someone else already created. With each new block the supply inflates more. Sometimes the supply is premined. Often blockchain "startups" tokenize their service, which would be like if Gmail started asking for payments in gift cards but worse because the service or product doesn't even exist yet.
Most of these database tokens were created for little to no effort (see the 10,000BTC pizza).
Risks like Bitfinex/Tether [1] collapsing, or the unregulated exchanges manipulating prices along with those large stake holders cashing out could easily evaporate the price far below what the last few weeks have seen.
Market confidence could be lost and it would be incredibly hard to regain because database coins have no inherent value beyond the hope that you'll find another buyer.
[1] https://medium.com/@bitfinexed/latest https://medium.com/@bitfinexed/latest
https://prestonbyrne.com/2017/12/08/bitcoin_ponzi/ https://prestonbyrne.com/2017/12/08/bitcoin_ponzi/
https://www.youtube.com/watch?v=6r04gfWfRkE https://www.youtube.com/watch?v=6r04gfWfRkE