Pure Investment | A New Way of Thinking about Crypto-Currency

By | November 4, 2017
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Let the Genie out of the Lamp… Sounds Cryptic? All will become clear.

So, Bitcoin is on the way up again, as everyone knew would happen, and thus fulfils its potential as pure investment. Because that is actually what it is, if you can think like that instead of thinking like a speculator.

The most attractive thing about cryptocurrency is its long-term investment potential, so the people and companies who take profit by selling at what they perceive will be a turning point back to a buyer’s market, are actually doing themselves a disservice, because they slow down the growth of the currency. But the majority always get things wrong.

And that is also how to kill a new cryptocurrency before it really gets going. If you are a team with a coin competing for the same chunk of the market, put a very substantial investment into a newish currency to shoot the price up. Then sell it all at once and watch the value of that coin drop like an Essex girl’s panties on the beach at Ayia Napa. Repeat, and repeat again to destroy all faith in the value of that coin.

What you knock, knocks you back!

There is an old saying – don’t knock the competition.

A watermelon farmer on the banks of the Mississippi once got sick of high-school kids stealing his watermelons, so he put up a sign saying “One of the watermelons in this field has been poisoned”.The kids couldn’t touch the watermelons then, but when the farmer went back to the field to take his next harvest, the sign had been changed. It now said, “Two of these watermelons have been poisoned”.

The farmer had defeated his own purpose, and that is exactly what happens when an ICO is manipulated out of existence, or a token is slowed in its growth or deliberately destroyed by the competition. Those who do it harm not just their target, but they poison all cryptocurrencies, including those they own.

So the value of all cryptocurrencies suffers when one is catastrophically affected, and it makes people think twice about investing in the very thing that is taking over the world. And because of the ‘poisoned watermelon’ it makes potential investors back off, and it makes those who have not been in cryptocurrencies long enough to recognise the trends sell up out of fear.

Reasons to Hold

For this reason, and other related reasons, I believe, as I’ve said before, in buying and holding, whilst keeping a ‘current account’ of cryptos to buy into new ICOs and lower-cost established coins. I don’t agree with everything in this video, because he doesn’t get the point that other crypto-currencies can actually help Bitcoin prices. But his enthusiasm is infectious, and look at the prices he is talking about. It’s a recent video and  Bitcoin values have more than doubled.

Potential investors then see growth, and that growth encourages them to make an investment, not just in a particular coin/token, but in making the leap from fiat to crypto, and perhaps spreading their portfolio amongst many cryptocurrencies.

Some Bitcoin enthusiasts hate to see other coins being promoted because, they reason, that the more people who invest in the competition, the less they will invest in Bitcoin, but that reasoning is mistaken because first you have to draw in the investors, and people are far more likely to start in the crypto-market by purchasing less valuable coins like Ether, before gaining the confidence to put big investments into Bitcoin.

Learning the Crypto Investment Trade

The knowledge curve to acquiring cryptocurrencies is not nearly as big as it once was, with most people being able to get a grip on what they have to do by watching a few instructive YouTube videos, but there is nevertheless still a bit of a learning curve before people get comfortable with the whole concept.

And the thing is, the really big thing about these new investors attracted to the big profits that can be made in cryptocurrencies is that they are far more likely to plan to buy and hold, and see what value their investments make over the next five years or so.

So that is where the new thinking comes in. If you buy and speculate, swapping coins and arbitraging them at every dip or surge in the value of a coin, you simply contribute to slowing the growth of the other tokens you hold.

And if you stick to just one or two coins, whilst it’s true that if you buy and hold them you are contributing to the longer-term stability of those currencies, you are not helping new people into the market… New people who would eventually contribute to increase in value of the coins in which you hold your biggest stake.

Thus back to the point of this article

This I believe to be true! All cryptocurrencies are investment opportunities, and whilst almost all new cryptocurrencies, at the ICO stage (Initial Coin Offering), have their own unique plan for their new tokens/coins, and it’s worth reading their White Papers to learn more about their plans to see if you think blahblahcoin is something that will take-off, and it’s great that some people will use crypto-coins in the real world to buy things, or to make money transfers between banks and countries, cryptocurrencies should be seen as what they are, which is investment for the future, with massive long-term potential.

Therefore buying and holding, adding to the Market Capitalisation of any cryptocurrency, is only going to help it increase in value, and will help to counter day trading speculation, which drives instability.

Get the Investment Message Out!

I think therefore that we need to get the message out to people, that if they want to profit from the blockchain revolution, the way to do it is directly. Don’t bet Bitcoin against Ether on the stock market or a day-trading platform. Instead, think of cryptocurrencies as a new form of money, which it is, and one with no Central Bank controlling the interest you can make. And no Market Maker manipulating any spread, or holding your buy or sell order until it makes them the most profit. Think instead of your cryptocurrencies as pure investment as if you were buying into Microsoft at the beginning of its life, and could see the future.

Because the future is clear in my looking-glass. Cryptocurrencies will take over the world. Whole countries eventually will abandon the Central banks and run their country on Bitcoin. And nobody can stop it happening. The Genie is out of the trap it’s been in for the past few thousand years. And the Genie can grant your wishes. All who believe in the Genie will become wealthy.

More billionaires will be made in the next five years through cryptocurrencies than in the whole of previous history through fiat coinage.

Thus society is splitting again. Some people will invest a week’s drinking money into an ICO and become rich beyond their wildest dreams. Most of their drinking buddies won’t do that, and later, wish they had.

So spread the news. Tell people about the Genie! You might even have to tell them for the Genie to grant your wishes. Share this article—that might help!

I’m not trying to tell you what to do! You might want to listen to a stockbroker, who’d tell you to invest in his or her stock of cryptocurrencies. You might want to listen to a day-trading wizard, who has a vested interest in creating instability, and will profit from all your bets, whether you win or lose, or you might want to consult a financial advisor, of which I’m not one. My vested interest is purely in helping cryptocurrencies take over the world. It’s a small dream, but it’s mine! Well, it’s a big dream, and it’s not just mine!