Price ≠ Value
"First, currencies are not an investment; they are a medium of exchange; that is, you use the currency to buy goods and services and/or investments."
Both quotes apply to crypto. Many of the new cryptocurrencies that have been printed over the years are NOT investments, in and of themselves.
The "investments" to watch will be the companies or applications being built on top of, or with, blockchain technologies. The future Amazons, Googles, Facebooks of the future.
This is because...
PRICE (of a token) ≠ VALUE (of a good or service)
Over the last decade+, thousands of cryptocurrencies were created because people could make "millions" (on paper) doing nothing. Because there was little to no regulation, many thought they could get away with it.
But this is not sustainable. And it's showing.
People are being sent to prison. Exchanges are shutting down. And "the law" is catching up.
What's popular, isn't always what's true
If you've been following my journey, you'll know that I've been in the space long enough to know a thing or two. I've certainly turned from a young, naive believer, into a more pragmatic, long-term thinker & builder.
The reason for this is because I've experienced the reality of all this technology in day-to-day life. I've been following the patent wars taking place amongst enterprises.
And I'm also exposed to the deep politics and dynamics behind the scenes.
In summary: what's popular, isn't always what's true.
What a laundromat can teach about the state of crypto
So if you continue to support crypto, that's fine. It's your choice. Just know that it has morphed into something that is antithetical to what you think it's about.
Every new cryptocurrency or token being created is now actually adding to fundamental problems related to finance, not eliminating them. It is making things more complicated than they need to be.
There's actually a great analogy you should read on LinkedIn here.
It summarizes what the entire crypto ecosystem has become, using the analogy of needing to buy tokens at a laundromat.
Just read the whole thing, it's hilarious and sad at the same time.
15 more years to go
I believe we still have about 15 years left before we see true players emerge and before blockchain technology hits mainstream globally.
The above statements don't take away from my passion for the underlying blockchain tech, or the industry, but the crypto ecosystem as a whole has gotten out of hand.
I look forward to everything consolidating.