Crypto Here To Stay?

DonalDayUmTray's picture
Rank: Gorilla | 620

Okay so the huge craze and hype over bitcoin and its counterparts are long over, last year seeing the price tumble to the dark depths of oblivion. Do you guys think that bitcoin will actually have a place in society as a payment means other than for drugs and illegal shit etc... CFA level 1 and 2 have added crypto as a topic for examination so it looks like it's here to stay. What are your guys' take on it? Do you stay well clear of this jumpy type of 'investment'? I just can't trust it just yet because it's price fluctuates more than a teenage girl's mood on her period.

Comments (29)

Jul 31, 2018

No.

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Aug 8, 2018
DJ D-Sol:

No.

Agreed. No. They're monopoly money.

Jul 31, 2018

Block chain yes but crypto nope.

Aug 3, 2018

The blockchain tech can be outsourced to many other things rather than just crypto so I totally agree there, like for voting systems an open ledger would be ideal.

Jul 31, 2018

Absolutely, yes. So long as demand of any kind exists for a non-government issue currency in any way, shape, or form, and so long as a superior alternative isn't made available, crypto is going to be here.

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Aug 1, 2018

To me, it feels like cryptocurrencies will continue to gather ground. A growing range of companies are accepting Bitcoin and other cryptos for legit purchases such as Expedia.com, Microsoft, Overstock.com, Dish Network and the list is growing.

In May, there was talk of Goldman Sachs starting to use its own money to trade with customers in Bitcoin-linked contracts. GS isn't currently buying/selling actual Bitcoin yet, but they've put a team together to look at that happening in the future along with getting whatever regulatory approvals and such.

Mitsubith UFJ is building what they call the "MUFG coin" for borderless shopping. CME is plotting on launching at least a couple of ethereum-priced products and indexes.

The SEC's been looking into crypto. Companies like Thomson Reuters are providing research products on the crypto topic, not just blockchain. And I am certainly seeing a slow but steady uptick in equity research on crypto discussions as well.

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Aug 3, 2018

There are quite a few firms accepting it as a means for payment but at the same time the payment process is really slow in comparison to visa debit etc.. so if bitcoin are going to actually be used as a means of payment then they gotta find a way to speed up their process

Aug 3, 2018

Agreed, there are a variety of hurdles that still need to be jumped before crypto gets remotely close to being a more mainstream way of handling purchases. Compared to the big dogs [credit card companies like Visa, as you mentioned] and other payment services like PayPal, Bitcoin needs to seriously step up its game speed-wise.

Have to see if I can relocate an article or blog piece that mentioned a typical Bitcoin transaction taking some 10 minutes and that it's advised that you wait until receiving 6 confirmations before considering the transaction being completed as successful. That's 60 minutes and I have read elsewhere of averages of closer to 80 minutes to complete a Bitcoin transaction.

Add to that, there is still the very obvious issue of security. The WSJ did a piece last month that mentioned over 50 hacks since 2010 or 2011 occuring on various crypto-exchanges and during ICOs.

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Aug 1, 2018

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Aug 1, 2018

Sometimes I am amazed by the lack of personal opinion among users of this forum. I want all my traded money back :(

Aug 3, 2018

I think crypto currencies will become more and more relevant in the future. Especially because of the Blockchain technologiy that provides transactions in a non- centralized network. But it will probably take more years until Bitcoin and other cryptocurrencies are generally accepted for normal purchasing..

science is organized knowledge - wisdom is organized life. Kant

Aug 8, 2018

It is the pet rock of our day... people 5 years from now will look back on it and laugh.

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Aug 8, 2018

That's the thing, because the CFA have added it to their exams it appears to be lasting longer than just five years. To be honest I also thought it was going to be a passing fad and a massive bubble but I am starting to reconsider

Aug 8, 2018

Yes, I think crypto (i.e. decentralized ledgers being used for transactions) will continue to exist, although at what price will crypto trade is under fierce debate due to disagreements in valuation methods.

The more difficult question will be which currency(ies) can last through the transitional period of potential institutional investment in the space, pump and dumb scandals, difficulty actually using the currency in an everyday sense, having to account for gains/losses on all transactions, etc. Overall, the best bet right now I'd say is on BTC itself as the market continues to consolidate (useless coins get flushed out, other coins sell off harder than BTC) as it does in times of prolonged weakness.

Definitely will be personally following the crypto markets for the next few years - very interesting market case study if anything...

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Aug 8, 2018

Illegal activity with crypto has gone down 80% since 2012. Bitcoin ETFs are expected to launch next year. It's becoming more of a legitimate currency, and there's so much upward potential. BUY BUY BUY

Aug 8, 2018

definitely not practical as a day to day currency yet

Aug 8, 2018

Totally agree man, like it is just too slow right now but the whole idea behind the de-centralised factor of it is pretty promising. All they have to do is speed up processing times for the currency on they blockchain and then I can go to walmart and do my grocery shopping with BTC.

Aug 8, 2018

I laugh at anyone who thinks it will become a "day to day" currency. If you want to understand where this whole blockchain craze is headed I suggest people read "The God Protocol" by Nick Szabo

Aug 8, 2018

The introduction of institutional players (if and when that happens) will make a huge impact on whether or not crypto is here to stay. We're still in the early stages of crypto as an asset class and this year's bear market could provide the right environment for these bigger players to make their mark. Regulation and custodial issues are still a major hurdle but signs of progress on this have happened over the course of this year.

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Aug 8, 2018

It surprises me to see so many "legitimate" sources in academia, media, and industry support something like Bitcoin. It's a nefarious means of exchange.

The bottom line is, if you're not doing anything illegal, there's no reason Bitcoin should interest you.

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Aug 8, 2018

You can say the same thing about gold for the most part.

Bitcoin has a chance to exists as a digital gold, but it's not backed by anything....like say the US military enforcing their right to collect taxes on a $15 trillion economy.

Array
Aug 9, 2018

Yes gold was the stupidest thing around until bitcoin came along.

Aug 8, 2018

"Rat poison"

Aug 8, 2018

It's like gold that while it's fundamentally impossible to value by any financial valuation theory ever, people still buy it. We can scream until we're blue in the face about net present value and discounted cash flow, but ultimately an asset is worth what someone else is willing to pay for it. And, people are willing to buy it. My prediction is Bitcoin, Litecoin, and Ethereum remain the "big 3" of crypto and start getting something resembling price stability. Then, the blatant obvious scam coins will disappear (what the hell is MaidSafeCoin or Dentacoin), and coins with a true unique value add of some sort will remain.

My bet is once the "oracle problem" is solved, smart contracts will end up automating a lot of back office functions, especially with OTC swaps. The problem now is that smart contracts could be pointing to bad data, but since they're self-executing intentionally without human intervention, there's no safeguard of some sort in case bad data triggers them, either through intentional malfeasance or if someone at Bloomberg, ICE or whoever just fat fingered something. If we can get assurance of good data, or getting good "oracles" as they call them, then I bet that we'll see more adoption of smart contracts and blockchain tech in general.

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Aug 8, 2018

Chainlink

Aug 8, 2018

Aware. Based Sergey will deliver the tendies, $1000 EOY

Aug 8, 2018

Yes u need to think ab global applications for crypto in corrupt or unstable countries. There's huge potential in Africa and Latam where a lot of their local currency is unstable and crypto can act as a stable medium of exchange

Aug 10, 2018
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