IF CRYPTO PLUNGES, SO WILL OUR CAREERS??
I made a new year’s resolution to invest, my small savings over the years, in cryptocurrency. In the past I made plans to start a blog, but never did. Then I came to know about steemit, loved the platform and got the opportunity to blog and invest in cryptocurrency at the same time. However, coming to the main point, I am seriously worried.
WHY WORRIED??
First, my heart and wife always say that crypto-world is a bubble (I can’t argue with any, too dangerous).
Secondly, I read an article today in The Economist Magazine.
Source: The Economist
The magazine is a credible source. The people opining their concerns in the article are economists. Maybe, adversaries to the crypto-world, but I am becoming susceptible to their opinions.
The major concerning points in the article are:
• Bitcoin is not the only crypto-currency that has fallen;
• Market capitalization of all crypto-currencies fell by half, i.e. to $400 billion;
• Something regarding Tether (lack lucid understanding of it);
• Numerous countries either banning crypto-trade or starting to crack-crypto-down;
• Banks, obviously, playing the negative role in one way or the other
But my main question is what if this is actually a bubble? If Bitcoin is down, so will Steem, and so will this platform. I am investing a lot of time to understand this platform and how can I contribute value to it. I will also invest in Steem, but only when I fully understand the system. This whole steemit thing can become a viable career for me. And, I don’t worry losing the small saving I have, but what if the whole thing is a bubble (including steemit). Will our efforts and money disappear like fart in the wind?
I am new to all this, help me understand this.
I understand your concerns and share a few of them. Here is a few of my thoughts.
If you look at several years history your will see that this is the 3rd Bitcoin crash. Usually when bubbles pop, they pop. But like the phoenix rising out of the ashes of market carnage, bitcoin and the alt coins keep rising back from the graves that commentators and those in the supposed know have dug for them.
Governments can screw with the rise of crypto, but to stamp it out of existence they are going have to shut down the internet. And every day that crypto lives to fight on and is adopted by another segment of the population, it wll get more difficult for any government to stop without hurting itself. As the Goldman Sach's of the world jump on the bandwagon, it is even less likely that a government will actively oppose it. They will just look for ways to tax it.
Tether is an elephant in the room because there is no proof that it is what it claims to be...fully one to one pegged with the dollar. If (or when) that baby goes it will leave a mark and probably initiate another crash.
Banks do not like the competition and that crypto, in large part, cuts them and their transaction fees out. Bankers are an ever present danger to the crypto economy as they own so many legislatures around the world. If peer to peer transactions start being the rage instead of a novelty, look for them to howl the loudest.
The crypto space is less bubble then a market with a lot of weak hands and first time investors who have put in the rent money and maxed the visa card to own a quarter of a bitcoin...which does make it kind of frothy. This last crash chased a lot of people out who needed to have a stronger personal financial situation before gambling on the market. And that is good for the situation going forward. The bad is that it will slow the climb from the crash bottom as weak hands that have learned their lesson will be selling all the way up so that they can pay the rent.
Its pretty hard to get traction on Steemit without believing in the viability of the Steem and the SBD. Me, I just shifted some of my ETH holding to Steem. Just traded some eggs for other eggs and moved them to a different basket. One can function on Steemit without investing personally or believing in the fuel that makes the engine run, its just going to be a slow, and I think, harder pull.
My upvote is not enough to say thank you... but I will repay you in future when I become a whale... because like lannisters, i always pay my debts... jokes apart, this is a serious analysis... thank you for making me calm and showing me the other side of the picture, which one ignores when worried. Lastly, how much did you or planning to invest in steemit?
I was intending to buy some Steem before I had joined steemit based on the idea and business behind it. The move to joining Steemit was unrelated actually. I had just burned out on FaceBook. It wasn't new money, I just moved $150 out of my ethereum wallet into Steem. Diversified I did, in a teeny, tiny way. The little payouts on Steemit have been going to SteemPower, which is useful to carving out a corner here.
Steem is becoming my number 1 crypto, behind Cardano...Which by the way, almost every day I find myself saying "Oh poor, poor ADA, you don't deserve this beating. Get up, get up off the floor!" So how much depends on the market. I would like to keep whatever I earn here, here, if that makes sense.
It does... thanks... and keep up your good work, it will pay off...