Today I received several crypto newsletters, all of which are pushing people to buy - big time.
This is what I think will happen:
- Economic troubles increase
- Crypto will again shoot up
- Oops, the economy is 'broken'...
- Crypto will climb even more
- Oops! Cryptos are 'broken' - massive plunge (very much like Dotcom bubble bursting)
- Gov't steps in with CBDCs or some 'quasi-crypto 2.0' to Save the Day®
That's a hunch, but keep in mind that it was my hunch for awhile now and it's quite strong. As I have learned more and more about cryptos, the hunch has been strengthened - not weakened. Most of the time, when I have a hunch like this, I ignore it at my peril. Well, whatever, right? I could be wrong.
Plus, Other Events May Intervene, but given how everything else is going these days, I really don't see cryptos as they exist today
'taking over' or defeating centrally-controlled fiat currencies.
Cryptos are a game, like most things in this world.
Things to be careful of:
- Can you get your money out?
Do not assume that you won't need your fiat account. IMO it's likely that you will, even if fiat changes shape over time - especially if fiat changes...
- Beware soft wallets
If they're hacked, you lose everything
- Beware hardware wallets
Depending on how you use them, you may get screwed. For example, using a Trezor with Exodus is a bad idea since Exodus imposes trading limits and often-ridiculous transaction fees. Using ANY exchange is risky. Many appear to be legit and have lovely fancy-sounding names, but have only been around for a few years. They aren't in it to make you rich...
- Don't assume everything will become crypto-ified
That's what you're supposed to think, so don't.
If you're one of the people talking non-stop about how cryptos will fix everything and be super-awesome, consider that you drank the KoolAid - or at least act as if you have, and make sure you cover your rear end.
- Basic needs come first
In the event of Total Chaos, you die without food, water, and shelter. Imagine a scenario where you are a 'Bitcoin Billionaire' on digital paper, but you're slowly starving or freezing to death... Oops! Crazier things have happened.
FWIW. I will be extremely happy (and wealthier) if I'm wrong, but alas...