Why I Think That Crypto Is Not Going To 0
Cryptocurrency is full of influencers that peddle the get-rich-quick scheme
It’s incredibly unfortunate that an industry that has so much to offer like cryptocurrency is full of influencers that peddle the get-rich-quick scheme.
In my opinion, they are missing something fundamental about finance in suggesting that they can predict the next winner in the massive growth battle.
I’ve chosen to invest in crypto, not because growth has been so incredible, but rather because the ethos and underlying technology make so much sense.
In that spirit, here are a few beliefs I hold on crypto:
Blockchain technology is a game-changer
When you have people shilling so much for their own benefit, you get followers and contrarians. I believe both are incomplete visions.
No, don’t follow blindly what other people believe about crypto, but also don’t discard the intrinsic value of the technology outright. You can believe that there is an overestimation of individual tokens like Bitcoin or Solana, even a bubble, and still believe in the value of owning assets that are not controlled by organizations or governments.
Cryptocurrencies have the potential to bring change to a system that is susceptible to corruption — and finally hold governments more accountable in becoming more transparent, less susceptible to fraud, and cheaper for consumers.
NFTs are great but still immature
Most NFTs today are about speculation only: buy now because they will be worth more tomorrow. But that doesn’t mean it does not hold potential.
NFTs are a radical idea in digital ownership, which means that we can now outright own digital assets, and intangible ones as well. It is empowering creators to build new experiences and business models while maintaining control over their intellectual property rights.
Take “Snoopverse” as an example. Built on the Sandbox, a Metaverse platform, it is a virtual experience created on virtual real estate sold as an NFT. The artist not only monetizes the virtual experience created “Snoopverse” — such as selling concert tickets or exclusive virtual fashion drops — but also owns the land itself. This is a radical shift in digital ownership, where big tech such as Facebook owns the distribution and rents their platform to the creator. But that is just a conversation started, the real utility of NFTs will only improve as the adoption of virtual experiences and the Metaverse increases over time.
The value will come from unexpected places
The amazing thing about innovation is that surprises most of us. The next Facebook will not look like Facebook at all. The same holds for crypto, you can be bullish about certain directions.
Take the idea of DAOs, or decentralized organizations, for example. Bitcoin is generally considered to be the first fully functional DAO, as it has programmed rules, functions autonomously, and is coordinated through a consensual protocol. Most people who work on the Bitcoin protocol have never met, and will never, yet abide by the rules of their community.
This idea is really powerful and can be taken into other areas, such as social networks, charities, or investment vehicles. The true innovation in the area will surprise us all — unless you’re in the front line innovating yourself!
Most “shilling” influencers are wrong
If you see an influencer talking about the next billion-dollar coin, beware. Last year, a group of influencers started promoting a crypto token called Save the Kids, which would help children in need and make money for investors.
After the token value plummeted within days of the launch, holders immediately started to sell their shares, rendering the project worthless. With crypto being largely unregulated, new projects are launched every other day in which influencers promote new tokens that fall into one of the common crypto scams.
We could all benefit from a little less flexing by influencers, a bit more factual education, and real crypto innovation.
Do you have any questions or suggestions? Reach out to us on social media — we’re always happy to chat!
Doshi is a crypto wallet that allows teens to learn about and explore crypto with supervision from their parents and without the fear of being scammed. You can find out more about our digital crypto wallet suitable for teens here.
The information contained in this article is not financial advice and is for general informational purposes only. Please consult your financial, legal, or tax advisor before making any decisions.
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