CRYPTO BOMBSHELL - Cryptocurrency’s Dirty Little Secret
Cryptocurrency’s dirty little secret is the unrecoverable account. And it is a human tragedy, and potential for fraud.
People work hard and save their money for their future, and to invest in the present. Often their hard work of a lifetime is saved and sometimes invested in a crypto currency in hopes of a better retirement or whatever is their dream. That money saved has the value of those years of wages and other saving instruments like 401K’s, all of which can be a part of a will or family trust. The value is, therefore, recoverable and can be passed on to beneficiaries.
When these savings are used to buy a cryptocurrency, it is adding that value to the currency. With the access key this value can be exchanged back to your currency at the current rate of exchange. The currency will record the value of that account and is then entered into the ledger. If the account becomes dead (unrecoverable) then the value of that account is lost for all time like cash stuffed in a mattress lost to a tragic fire. Such a loss of human/work/value is not only tragic on a social level, but needs to be considered when calculating the value of the currency to reflect a fair valuation.
Accounts become unrecoverable for a number of reasons. A person can die suddenly leaving no access key to an account, or the key can be lost in a house fire, act of war, or natural disaster. These can be small amounts or amounts in the millions, so the valuation can be vastly incorrect. Over time, there will be a per capita percentage of unrecoverable accounts that can be predicted, but the value of these cannot be assessed. Some have pennies and others millions. There is really no way to predict because many people are secretive about their accounts. There will be a number of accounts simply forgotten or abandoned for whatever reason.
There is no way to predict how this effects the valuation of a cryptocurrency, but the effect of the loss of value in human terms is tragic and unforgiving.
Input is graciously welcomed.
EOS will have recoverable accounts...
I would be interested to see how that will work. Let me know.
Hello dear this cryptocurrency when you invest in crypto then forget your money it may become from 1 to 10 and may also come back 10 to 1 ok
otherwise have a good day
and at the last Good luck
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This is bollocks mate, the less currency is on a market to trade, the higher the demand, so the value will just rise because of those millions that will never enter the market because of unrecovarable, lost etc
I disagree. The false valuation is certainly criminal fraud. It is immoral for this tragedy in human terms to be a profit center for anyone. Neither can it be calculated or monitored. This is a serious problem and investors need to beware.
The whole world is a fraud, but we were not talking about that, or about the mechanics behind bitcoin and crypto (and regular markets for that matter). My previous statement is simply a simple example of how a market based on question & demand works. And that’s also what’s wrong about your assumption, because with scarcity (because of all those unrecovarable accounts you mentioned) and a high demand (next bitcoin bullrun) the price will go up. There’s nothing criminal about that ... Anyway, have a nice day and good luck
A currency's value being misrepresented is criminal somewhere in some law book somewhere. You bought your currency because of what you saw as the valuation. You were vastly misled about assets. You make a valid argument when you bring up the fact that the currency is valued based on belief. The tragedy is the loss of real value to society and to the future generations. Good luck to you as well my friend. "What does it profit a man to gain the whole world only to lose his soul?"...Jesus (paraphrased)
The value is lost to the currency as well, yet on record as a real asset.