***Unless you’re into Cryptocurrencies or investing in general prepare to be bored to tears.

Cryptocurrency has been getting quite the buzz lately. Especially with new highs being recorded nearly every day. For the new investor it can be quite exciting. With the rise of each PIP it’s as if dreams take one step closer to reality.

When I first heard about crypto a few years back I immediately called my broker/dealer and asked what I needed to do to sell it. That inquiry was met with a brief laugh and a response of, “You can’t.” Having no knowledge of crypto I was curious as to why. The guy on the phone then proceeded to tell me that cryptocurrency wasn’t actually a Security. It’s not regulated by FINRA or the SEC and there isn’t a platform with any broker/dealer that sells it.

That news led me down a rabbit hole of curiosity that lasted for weeks.

How did it start?

Who sells it then?

What’s it backed by?

How is it bought and sold?

Turns out no one really knows who started it as we know it now. The concept is loosely based on a paper written by an anonymous programmer/programmers using the pseudonym Satoshi Nakamoto . That bothers me. It would seem to me that if someone set out to totally change the method and means in which we transact business, provide for our families, etc. they would want to be known. I mean, right!? We know who created Microsoft and Apple. And who runs Amazon. Some of the most influential businesses on the planet. We know how they started and who runs them. But cryptocurrency? Eh, we got kind of a general idea…and people are investing thousands into it. 

What’s it backed by? 

Where is the gold or brick and mortarbuilding that it derives its value from? The short answer is: there is none. Crypto is decentralized and is created using blockchain technology. Data miners are the ones responsible for adding the transactions to the blockchain. Some are actually paid to do this. You can actually invest in data mining. All done by anonymous people from all walks of life all over the globe.

There are quite a few different cryptocurrencies to choose from now. Digicash was the first, then Bitcoin, Ethereum, Ripple, Cardano, Litecoin, NEM, Stellar, IOTA and EOS. To name a few. Most trade like regular Securities, with swings both in high’s and low’s. And people are making money, kinda. 

I mean, it’s not money. Not in the sense that we know of money. 

But, it can be converted to money. With select exchanges that deal in cryptocurrencies for an exchange rate. And those differ, depending on the exchange and the crypto you exchange. And that is the BEST thing about cryptocurrencies: you can exchange them for real cash dollars.

So this is the thing, I’m not writing all of this simply to bash on cryptocurrency. Definitely not. However, I AM at least attempting to give some new and some would be new investors some pause over investing in cryptocurrencies.

Because to me, they are sketch AF.  

I don’t feel comfortable investing in something where I don’t have a clear understanding of how it started and who created it. When I’ve brought that up to some crypto investors I’ve often been dismissed. To them, it feels real because they have an app on their phone and it’s talked about in the news.

And that’s great…

but what if it’s origin and development to what it is now is just some part of a government test,  just to get people used to the concept of digital currency?

People tout it being decentralized and unregulated as a good thing. In some ways perhaps it is. But when I have brought that up to crypto investors and mention it’s not actually backed by anything, I’m told that, “It’s the people, man! It’s WE THE PEOPLE giving it it’s value and taking back the control we should have taken back from the banks years ago!” In which my only response is somewhat of a blank stare of bewilderment. “The people give it value”…such as if we were to trade bottle caps in a virtual game? The red bottle caps are worth more because more people want them and stuff?

Ok, so sarcasm aside, do you really think, the people who are currently at the top of our banking system and responsible for international currency exchange don’t at least have a hand in some of this?

Do you think people of that caliber are going to sit back and allow this type of barter system to take place without them getting their cut? Wouldn’t that be an absurd thing to think that they would do that?

See, they’re even hinting towards a total crypto collapse. In fact, there was actually a regulator in the U.K. that came right out and said that: Click here. Cryptocurrency is well on the government radar: Click here.  It’s only a matter of time before the Central Banks roll out their own Central Bank Digital Currencies…and guess what happens when that happens? All of the small cryptos go away. In a blink! Everything about cryptocurrency has been monitored, recorded, and tested. I’d go so far as to say it all has been planned. Just look at Dogecoin…are they laughing at us? 

As more and more people post on social media about how they’re investing in crypto I just felt like I had ta say something. Things may not be as they seem with it.

Don’t get me wrong, I am all keen on people investing.

But when people who have never looked at a Stock report, Prospectus, or have any investment experience what-so-ever are investing their hard earned dollars into something as sketch as this, something needed to be said.

The buy and hold strategy of investing is one of the oldest and most proven methods of investing since the beginning of investing. Because it works. It’s the “get it and forget it” method that is practiced by probably 90% of everyone who invests. But, in this case, that could be a very bad idea. You have to remember, crypto’s are still relatively new. So, there’s plenty of changes ahead. Changes that may not work well to your favor. In that case, finding an exchange and converting crypto seems more and more like a better idea.

….that’s what I think. 

***I’m not affiliated with any Broker/Dealer currently. This blog is for information and entertainment purposes only. This is not to be considered or construed as investment advice. Any actions you make after reading this are done on your own accord and I will not be held personally responsible for any loss that may or may not occur. Investments ARE risky and you are investing at your own risk.

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