Where now does thy crypto go....

Yet again we find ourselves at another huge drop in price across the board. I'm sure its no real surprise to most of you, i called this way back in January. The demand is just not there yet, YET. If we stop and think where the future might go, digital currency seems to be the only logical outcome. Governments will be far to interested in the control it provides, not to mention, keeping tangible assets out of your hands and further cutting costs from have to manufacture the coins and banknotes. Lets not forget the US penny has been so devalued that it is not even worth it's weight in copper. Accountable, taxable transactions is all that matters to the government.

So now the question becomes, is crypto going to be replaced by another digital class asset. And my thinking is yes, but only if they can design the system to track it all. Or if the gross overall outcome is still in their favor. I see far to many issues with crypto as we know it, hacks, back door entry from the designers, fiat, the increase of tech year over year and the fact is not regulated just to name a few. Think about what not regulated means, those with the ability to cheat or manipulate the system have very little reason not to, for the payout. I fear this is exactly why it did not get regulated.

Look to the future of what a coin may or may not be. Tether has the right idea. If your computer is making commission for processing transactions, Then that asset should be backed up with a portfolio so to speak. Be it gold, stocks, Banknotes, even foods and minerals. The problem here is that your transaction commission comes from thin air as it to is purely fabricated from nothing more the a spent electrical signal. The number of coins you see will die off, sure hobbyists and vacation spots and some other uses in house commercial so to speak will be a thing. In the case of say a Disney, usable at any theme park, or star trek coins for convention junkies etc etc.....little more then a token, but they will have value to certain people. Steemit itself is a perfect example. its a user based coin, internal in nature but can be had by anybody. Note: these coins will only be as good as the people behind the scene, running the systems of use for the coin.

Will it drop more? Yup i am afraid so, i do expect it to return but it needs to be looked at as a whole, and tweaked. Tether is the only coin standing out as shining light. But to be fair i do not know all the coins.

I still want to say, be careful about investing, if you yourself do not use that coin for your own purchases or transactions, then why would any one else. But if you and all your friends are sending money to each other via dogecoin. Then at least it has it uses. Just be careful, this whole thing could flatline as a failed experiment.

Unlimited supply is the killer of all. Does anybody remember baseball cards and comicbooks in the 90's? Huge runs of product held up well with market conditions for a long time, but when supply far exceeds demand, The value drops in huge amounts and near daily. Ken Griffey rookie card was at one time , $100's of dollars and now almost 30 years out, its not worth much, everybody who wants one can get one for $20 or less. This is not a player with high hopes that failed or got hurt and was never seen again. This is arguably "Mr Baseball". Thats what supply over demand means. Coins are no different. bitcoin is not limited, sure they say it is, but is there not BCH? and when that runs out? yup another coin will pop up. 2000+ coins on the market? TV says there is trillions of dollars of demand but what they dont say is that US, Euro, Yen etc etc is already doing a fine job, Do you know anybody that has money and says "god, its so hard to find somebody who will sell me something in US dollars." ? Marketing Created the demand, and may not have got it to catch on like they intended.

Demand is King. If you don't have to have a coin for any particular reason. Dont risk more then 3-5% of your savings. i personally would not even go 3%. Tech is tech, old fades, and new rules the day. New thinking, New directions, Look at companies breaking the mold, and offering a real asset or service if you do.

Thats my opinion anyway. But if you really think it goes in another direction, let me know...i love the debate. And your sure to get my weak minnow upvotes :)

John W Geer