My starting perspectives on trading crypto
I’m a person interested in business and its role in society. I’ve started writing about blockchain as I feel that it’s an interesting new piece of technology that can be used in specific scenarios to improve business performance.
I think there’s a fundamental difference between cryptocurrencies (those which are supposed to be used as an exchange of value like BTC, LTC, Nano, etc.) and crypto tokens. The cryptotokens are my particular interest, as I think blockchain has the potential to disrupt some business practices, and even industries. My current interest in this is where blockchain ecosystems are being created with fixed token supply and an inherently useful token. I believe these tokens will have a potentially significant long term value if the ecosystem starts to gain adoption. I intend to cover examples of these.
Some things that I believe that are probably not that popular in the crypto space:
Cryptocurrencies are in a bubble (for the most part)
Most crypto tokens have business plans that are unrealistic and unachievable
Most investors have not critically evaluated the tokens that they hold well enough. Often the economics of a token make no sense, or significant business risks have not been priced in accordingly.
Blockchain will not revolutionise the global economy, but be absorbed into it and used where it offers a return on investment. There will be specific use cases where significant value will be gained, but many people have vastly overestimated the long term impact of blockchain.
The landscape changes constantly, and this means constant revision of the opinions that you hold. A change in legislation, or a particular stance of a company or its leadership can cause a need to change opinion quickly. Being unprepared to remain objective, emotionally detached from your cryptos will be damaging to your perspective.
“When the facts change, so does my opinion” - Keynes (though disputed)
The write ups that I create are intended for my use primarily. Writing down my evaluations helps me to structure my thoughts more effectively. I’m happy to share it in a blog so that people can challenge me on the points that I make, as getting more perspectives will only help my understanding.
If you want to challenge my views, I’d welcome that. I’d only ask that you do so professionally and with reasoned arguments.