Don't mind the dips. Cryptos are here to stay. 1/22/2018

longdayzjourney (25)in #cryptocurrencies • 7 years ago

So, I saw an article, entitled "Crypto-currencies are in a tailspin"(https://www.economist.com/blogs/graphicdetail/2018/01/daily-chart-14), in The Economist that seemed to have a more-or-less reasonable assessment of the huge losses spread out across most cryptocurrencies this morning--Asian regulators cracking down on exchanges. By some estimates, by around 8:30 am EST, the crypto market had shed a little less than $100 billion. Nothing to sneeze at, but regardless of these huge dips and impressive recoveries throughout the young life of cryptos, panic still ensued.

For those who have been studying cryptos and blockchain since Satoshi Nakamoto's white paper was published back in 2008, the soundness in principle and technology underpinning this revolutionary new model for creating--what shall we call it--a store of value signaled the end of an era dominated by a top-down, centralized, predatory, draconian model of finance and economics. This genie is out the bottle, and all the regulations in this world won't be able to put it back in. Why? Because it's based on sound scientific principles, physics--the law of our universe, not a fiction driven by 19th century ideology based on class, religion and race (I will follow up on this thesis in a future blog).

Although the Economist article I mentioned earlier appeared to treat the sell-off evenhandedly, one couldn't help but see the low-key hyperbole in the subtext, especially in the graphic used comparing the huge dip this morning with historic asset crashes that serve as text book cautionary case studies.

The comparisons made in the chart would be somewhat akin to comparing the Hindenburg with the Concorde were the supersonic commercial jet still flying. This analysis would be premature at best and disproportionate at worst.

Perhaps, John McAfee said it best in a couple of tweets today