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RE: It Has Been a Brutal Few Days on All Crypto Fronts.

in #bitcoin7 years ago (edited)

Thank you for this post. This is the first time I ahve read a post of yours. I appreciate the optimism. There is no doubt that we are onto something here. Although I do worry that so many people are uneducated about their investments. Without the education, a simple Hodl strategy could be the absolute worse move. What we know right now is something I write about and advise people to keep in mind. The US and every other major market has not defined crypto as a currency, but as a investment.

This is significant because ti determines how they can treat it. You saw recently that the SEC in the US has announced they will begin to regulate. You can bet that this will be heavy handed and many cryptos will be in trouble. They will also audit and regulate the exchanges which means that a lot of current ordinary trades will become illegal. The SEC will surely look to slow down crypto trading for safety and in order to see where the money is going.

Most worrying perhaps for the marketplace is that they are announcing that they will review the ways companies have ICO'ed. This is perhaps the biggest issue because nearly all jumped over the legal route to raise money fast and without oversight. There is a chance that they make these companies de-list and then go through a different process of listing.

I have bene advocating for months that the crypto companies get together and police themselves or they invite over regulation. They have to weed out the bad tokens and characters because if not, the governments will do it.

In terms of cryptos being treated as coins, do not look for that to ever happen. The criteria for someone to have a "currency" is astronomical. You have to essentially be considered a country. Thefacts that cryptos are decentralized essentially ends that option. In short there is no one to hold responsible. This does not mean they cannot thrive and people make a lot of money. but you need to understand clearly what you are buying and the conditions that make what you purchased, valuable, have lesser value or become completely useless.

My personal thoughts are that any crypto whose lead and primary benefit is complete anonymity or those using it, is dead. Right behind those are cryptos that raised a lot of money in ICOs and cannot show where that money went. DEAD.

I suggest people do their research and make sure they are invested in the right ones because There Will Be Blood.

By the way I mention the SEC in the US because they set the tone for most of the rest of the world and they will force nearly everyone else to comply. Watch them closely.

Just my current thoughts. Thanks and God bless.