At first glance around the Thanksgiving table, it seemed that awareness about cryptocurrencies was spreading – and that is a wonderful thing. Upon closer consideration, however, it seemed what actually was spreading was awareness about the price of cryptocurrencies – which is probably much less wonderful. Whereas the latter plays right into the hands of “bubble” fears and is undeniably unstable, the former isn’t nearly as easy to dismiss… because it is undeniably disruptive.
If you were also talking crypto with your family yesterday, then the conversations probably kept falling back to “returns”, “prices”, and “trading”. That’s to be expected, really, because monetary gains such as those witnessed this year in the crypto space have left people in awe. Price talk certainly isn’t bad in and of itself. The danger is that the conversation can easily stop there – and if it does, you may have inadvertently set your family up for some catastrophic losses in the future…
If you don’t have time to pick up the conversation again, please send them here – at least let them read the rest of what they need to understand.
Price Talk (Recap)
Everyone needs to internalize the fact that the price of crypto (blockchains, cryptocurrencies, and smart contracts) is truly, fantastically, unstable – unlike anything they have every seen. This is, in part, because the technology itself is still very new and unlike anything anyone has ever seen. Myriad potential applications are still coming into view.
On any given day, the price may be a result of an irrational and speculative marketplace at best or downright manipulation at worst. If someone’s interest and confidence in crypto hinges on nothing other than prices – then they are putting themselves at the mercy of market manipulators and the eventual whims of governments and their accompanying crony-capitalist bankers. Investors who consider price exclusively will be far more likely to panic-sell in the bad times and make poor investment decisions in the good times.
Consider this: even if the prices of all crypto assets fell to just 10% of what they are today – they would not be “dead”. The technology would be no less disruptive if the only changed variable was market price. Such a turn of events would only mean the market had panicked – and/or, very likely, that crypto was under attack. To imagine that crypto will not come under attack when it holds so much promise to upset the status quo on a global level is… probably very naive.
One aspect of what makes cryptocurrencies so promising is that they can, have, and will continue to survive attacks. The math is solid, the theories are robust, the technologies are transformative… and, as a result, the future of crypto is not nearly as uncertain as some vocal bankers might prefer that you would believe.
Crypto’s “nontraditional” resilience has been noted. Financial experts and academics alike have marveled at the novel relationship between market volatility and crypto assets. Bubbles do not traditionally pop only to consistently re-inflate with vigor and surpass their prior valuations. This is not accidental – crypto resilience is by design.
The open-source, digital, decentralized nature of these systems means that even if they could ever be completely broken – anyone with motivation could readily rebuild them. Attacks that do less than total damage – take even less time to recover from. This characteristic resilience will only continue to define the space. The more people who invest in these systems, the more people with motivation there are to ensure that the systems thrive.
Unlike traditional investments, crypto assets are not dependent on the ideas and actions of a CEO or even a limited set of employees. Rather, these projects have access to a far greater number of minds than most companies – and that number is constantly growing. Any one of those minds can add value to the system – no need for job interviews, social connections, vast capital, or ivy-league pedigrees; this openness is an unparalleled advantage that makes traditional investments look much more confined (and rightly so).
The set of people you are investing in when you invest in crypto is much more vast and diverse than most people actually realize. The communities that exist around assets in the space are not easily translatable to other asset classes – they are valuable in and of themselves, and they add immense value to your crypto investment.
The ever-improving technology and ever-increasing mind-share backing these crypto investments virtually guarantee that they will successfully disrupt every industry where crypto makes sense. The list of industries where it “makes sense” is constantly growing, as more people devote their attention to the idea. With the eventual arrival of autonomous organizations, all traditionally-organized enterprises will likely be at risk of being re-organized with crypto.
It would probably be cliché to say that the possibilities are limitless – but it would be remiss not to note that they are trending in that general direction.
The price of your crypto investments next week, next month, or next year is impossible to predict. What the future of the global monetary systems and businesses look like is decidedly less uncertain. Crypto will play a central role.
Governments and crony-capitalists may yet try to squash this imminent threat to their comfortable establishments. They will ultimately be unsuccessful in doing so. Crypto is relentless and unstoppable by its very design.
Whatever happens with the price, do not panic merely on account of the price! Do not let the price alone influence your faith in your investment. Continue to learn about what you are invested in and recognize its potential to transform the world. Realize that you are a member of an ever-growing community pouring resources into realizing the full potential of crypto.
Above all else, remember that the price is not the end – in fact, it is indicative of this being the very beginning. At some point there will be no fiat currency remaining to price your crypto with. Crypto will be essential for your daily life in a vastly more liberated and democratic world. When that time comes, the fiat “price” will be the furthest thing from your mind. No sense in letting it be your focus in the meantime.
Educate yourself, invest in what you believe, and enjoy the ride – never panic.
I’m passionate about blockchains. I’m excited about decentralization, autonomous organizations, cryptocurrencies, and uncensorable dApps.
I’m also overwhelmed – with questions about these cutting edge technologies. I want to understand the tech, the politics, and the implications of the blockchain revolution.
Most of all, I want to share what I discover – because broader understanding will lead to greater participation, more rapid adoption, and, subsequently, a better world.