Common Blockchains And Uncommon Profits, Investing In Blockchain Technology

Introduction

When deciding to locate money on any other market different than blockchains we can expect to find a lot of already available knowledge about them. We would have opportunity to choose beetwen many specialists and their investment philosophies from strictly conservative ones, which support investing in companies with long history of well documented profits, to the ones that supports investing in the given market start-ups. In the case of blockchain market it is much harder to find any investment philosophy. Technology is still very young, very hard to understand and it evokes extreme feelings. Without programming and technical knowledge it is really difficult to find an amazing idea before speculants crowd arrives (I deliberately name them speculators).

However, I want to clarify the investment philosophy for blockchain technology and propose it as a mix of fundamental analysis by Philip Fisher and programming knowledge. 

1. Philip Fisher avoids studying companies accountancy.

Translating into blockchain technology: I claim that in case of investing in already working blockchain with at least tens of major nodes, it is bad idea to look for profit in reading the code. In the code we will find only mechanism. I don't think we will find there any investment value. I would be calm about bugs too, if creators and community didn't find the bugs, it is highly improbable thwe will find them. Major bug sooner or later will be caught by community, fixed, consensus will be achieved and  Hard-Fork will be done (changing the code responsible for creating new blocks, leaving old blocks unchanged).

2. P. Fisher analyse company growth potential, by asking himself very thoughtful series of questions.

Translating into blockchain technology: Lets start from simple question:

What are the reasons to hold cash, which cryptocurrency should be?

1. Willingness to secure the future.
2. Waiting for a good deal.
3. Saving, to buy something expensive.

Therefore: Is locating your savings in cryptocurrency safer than locating them in dollar and we can expect increasing number of users?

Till the end of 2016, till massive bitcoin speculations occurred, cryptocurrencies were alternative place of locating your cash, place where governments haven't got access. I claim, that at that time it was an alternative way of keeping cash when you do not trust current financial system, capable of stealing everything you have in one moment. Currently massive price fluctuations prevent thinking about cryptocurrency as a cash alternative. It is much safer to buy common shares, which also protects us against current financial system and does not fluctuate dozens percent per day. 

I conclude that cryptocurrencies currently won't increase their value by users keeping in them more cash.

BUT! New cryptocurrencies creates new reason to hold them: INFLUENCES!

In order to explain what I mean by "influence", I will give a few examples:

1. Influence on cryptocurrency (on itself)

Mere possesion of cryptocurrency gives us power over its production. Possessing cryptocurrency based on Proof Of Stake (PoS) algorithm, algorithm responsible for reaching nodes consensus, algorithm choosing who  (which node) next will have a right to generate block. By possessing cryptocurrency, we've got the right to choose who is responsible for keeping the network running and you can always vote for yourself. 

2. Influence on communities, people 

Perfect example: Steem. By possessing blocked cash you became knowledge and information dealer. Level of your influences decides who and what is popular or not. Mindless mass of likes is no longer in power! From this day on, one Steem Lord is worth much more than a thousand of Mindless Likers.

3. Influence on Company

Possessing token on Ethereum platform makes you owner which has created token**, because token is nothing else but common share with weak legal security. Unfortunately not everybody realize this.

4. Influences not discovered yet.

These are the only 3 examples showing that cryptocurrency is something different than money. I think better name for cryptocurrency would be cryptoinfluences, because that's what currency really is: all kinds of influences. Who knows what other type of influences will be brought by new cryptocurrencies (for example based on EOS platform).

At this place we are going back to Fisher - like questions.

Will people in the future want a given type of influences more than they want them today?

People want more the given type of influences the bigger the community is, so it leads us to another question:

Will the given blockchain community grow?

I will place precise analysis of every cryptocurrency in separate posts, here I only conclude everything within a short summary. Community of most currently existing cryptocurrencies won't grow, they  carry nothing more than transactions possibility (even anonymous transactions is not enough to make them more valuable, they are too easy to implement on any other blockchain), they do not carry these essential Influences . Most of cryptocurrencies will fall, they will be forgotten, their price will fall to frightening Zero Dollars. Only the ones carrying Influences will survive. 

I see a very bright future for Steem and EOS blockchain. Thus dear Steemians I wish all of you becoming millionaires, because we've got potential for that.

*More about lack of correlation beetwen price and value: Graham B. "Inteligent Investor" Chapter 8, Comments to Chapter 8
**Currently it is almost unenforceable, but in fact tokens are equivalent of common share on blockchain.