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Crypto firms say thousands of digital currencies will collapse, compare market to early dotcom days

johnNjohnN
edited June 2022 in Other Investing
https://www.cnbc.com/2022/06/03/crypto-firms-say-thousands-of-digital-currencies-will-collapse.html

Crypto firms say thousands of digital currencies will collapse, compare market to early dotcom days

***There are more than 19,000 cryptocurrencies in existence and dozens of blockchain platforms that exist.
Several cryptocurrency industry players told CNBC that thousands of digital tokens are likely to collapse while the number of blockchains in existence will also fall over the coming years.
Brad Garlinghouse, CEO of cross-border blockchain payments company Ripple, said there is likely to be “scores” of cryptocurrencies that remain in the future.***




we have stop investing CRYPT-BASE currencies past 3months. was a smart move IMHO. Many friends lots moderate amount of monies

Comments

  • PRESSmUPPRESSmUP
    IMHO, the investment potential for crypto was always a prime example of the "Greater Fool" theory. Same with NFT's. The underlying technology of Blockchain is a different story.
  • Observant1
    PRESSmUP said:

    IMHO, the investment potential for crypto was always a prime example of the "Greater Fool" theory. Same with NFT's. The underlying technology of Blockchain is a different story.

    +1
  • AndyJ
    One whole coal generating plant in my state was bought by and dedicated entirely to a crypto operation. The power consumption of that game is insane.
  • rforno
    edited June 2022
    I see things like Bitcoin and perhaps some of the fiat-backed stablecoins (GUSD, etc) being okay and likely to form the basis of whatever turns out to be the 'respectable' crypto economy. But the zillions of 'memecoins' or 'sh-tcoins' out there? They're fools' gold at best and deserve to die, and soon -- to protect the little person.

    And I agree there's a ton of wasted energy here. There are some miners who are focusing on sustaintable generation (hydro, mainly) which is encouraging.
  • Observant1
    edited June 2022
    There are more than 19,000 crytocurrencies in existence because people spun a good story about crypto and we were awash in "easy money." Cryptocurrencies don't have any earnings and pay no dividends.
    Crypto prices are notoriously volatile and security risks subject investors to potential losses from hacks or fraud.
    Investing in this space amounts to pure speculation (which may be ok if you understand the risks).
    Unless you engage in illicit activities or reside in a country with a history of hyperinflation
    (e.g., Venezuela, Zimbabawe), I don't find crypto beneficial ¹.


    ¹ However, blockchain technology is undoubtedly useful.
  • stayCalm
    While blockchain is useful it is very challenging to get an ecosystem to adopt it. There are some success stories out there but blockchain isn't scaling at speed.
  • beebee
    Pertinent



  • ProtonAnalyst33
    At this rate, it looks like FTX will own all of them + Robinhood. SBF is crypto's savior.
  • yogibearbullyogibearbull
    Or, rescuer may need to be rescued?
  • ProtonAnalyst33
    edited July 2022
    yogibearbull said:

    Or, rescuer may need to be rescued?

    Lol you may be right. SBF seems like a fairly sharp and humble guy. Remember, he's donating all his wealth.

  • WABACWABAC
    Couple of months ago the guy that fixed our dryer told me he was buying crypto. At that time it was only down a little. I asked him if he was buying the dip. He said "Yep." And then said he was going on vacation to New Zealand.

    I hope he enjoyed his vacation.
  • hank
    edited July 2022
    WABAC said:

    Couple of months ago the guy that fixed our dryer told me he was buying crypto. At that time it was only down a little. I asked him if he was buying the dip. He said "Yep." And then said he was going on vacation to New Zealand.

    I hope he enjoyed his vacation.

    I fear this is more widespread than we realize. If “the dryer guy” was hoodwinked, I’ll bet so too were “the butcher, the baker and the candlestick maker”. In short, a lot of people right now are likely trying to cope with a serious breach in their household finances.

    Clip from today’s WSJ suggests how some of the unwitting might have been snickered into thinking their money was perfectly safe.

    To customers, Voyager marketed its offerings as safe, particularly for U.S. dollar deposits. “In the rare event your USD funds are compromised due to the company or our banking partner’s failure, you are guaranteed a full reimbursement (up to $250,000),” Voyager wrote in a 2019 post.

    Voyager’s main banking partner, New York-based Metropolitan Commercial Bank, also sought to reassure customers of the crypto broker that they would be protected. The bank said on its website that an omnibus account containing funds of Voyager customers was insured by the Federal Deposit Insurance Corp., and that standard deposit insurance covers up to $250,000 per depositor. It noted, however, that FDIC insurance “is available only to protect against the failure of Metropolitan Commercial Bank” and that it “does not protect against the failure of Voyager.”

    From: “Crypto Broker Voyager Digital Files for Bankrupcy”
    Published in: The Wall Street Journal July 7, 2002
    By Eliot Brown & Yifan Wang
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