RE: Cardano ADA - Analysis of our HODLfolio pick!
Ripple is trying to change the way banks move money around and more importantly, it seems they are winning them over. So unless someone else comes along, bigger, better and stronger than RippleLabs - Ripple will become a major player in the future markets.
This doesn't mean Ripple as a crypto will have any value. It will likely hit $1 - $3 in 2018 but in 2019, 2020, 2021 and onwards it's likely going to stick to that price range. If they do become a major player they'll survive the crypto collapse which will innevitably happen.
By collapse I mean the following:
- 99% of these "blockchain" companies are ideas at best.
- Some will become a reality.
- And then some of those will become an actual legitimate business that gets users and generates revenue.
- Only a few of those can actually become majors.
- This means the majority will fade into nothing. Such is business.
Cryptocurrencies will live on BUT this happened during the .com bubble and it's naive to think it's not going to happen here.
So building your portfolio around blockchain products that are likely to be majors in the future is theoretically the best avenue as you don't want to be stuck with hundreds of coins during that collapse. It will be swift, come out of nowhere and cause exchange carnage.
This is all theory and my own opinion. I could be very wrong, plus a collapse is likely a number of years away.
I agree very much with your points in your great response!
Regarding Ripple, I agree that the company can do pretty well in the future, but the fact that the XRP coin is not stock in RippleLabs, may leave token holders as investors without rewards, right? The point is that they do not own any part of the company and therefore are not entitled to any benefits coming out from it.
Two very important points in your explanation:
So, what can we do?
Ironically, I had the same discussion with my colleague about how coins aren't shares.
At some point blockchain ideas are going to come to fruition and in business, acquisitions will be rife. Just think right now Ethereum should pick up Quantstamp and not let it migrate to other networks like it intends. It would become another feather in Ethereum's bow.
So if company X buys company Y, what happens to the investors? They get nothing as the coins have no rights, the buying company could say "tough!" and there is no recourse. Imagine that on a company with a market cap of $1.5bn or something crazy...
Or, even worst, if using DPOS, can an investor come in and buy enough stake to take the voting rights to dictate the network? This is how hostile takeovers happen with shares.
This is why I'm confident regulation will occur. Right now it's the Wild West and no one quite realizes how bad it could get once the violence starts. Think back to the .com bubble... Businesses just vanished over night.
I keep saying the future is going to be very interesting... I can't wait.