I would like to make some key points: 1. Plenty of crytpocurrencies have a limited supply, fiat currencies have an unlimited supply and consequently continue to depreciate. 2. Crytpocurrencies don't have tax demand, but essentially tax demand is the only thing supporting fiat (that continually depreciates) as fiat is the only 'legal' tender for paying taxes. 3. Some say cryptocurrency is nothing but digital 0s and 1s, but so is most fiat for years upon years now. 4. Cryptocurrencies are more liquid than stocks, bonds, and similar assets. To the best of my knowledge you can't get those funds today if you choose to liquidate, with crypto you can get it today. 5. Some cryptocurrencies may go bust, but so do companies, corporations, banks, and governments. 6. Cryptocurrencies are transactable assets. People can and do make purchases with crypto, they cannot with stocks or bonds. 7. To the best of my knowledge, cryptocurrencies present the fastest and cheapest way to transfer funds globally.
Finally, its my opinion that silver and gold are better MONEY (not currency) than fiat AND cryptocurrency.
@drumfool@johndoe2016 Please stick to FACTS and not CONJECTURE: please provide sources / links to any statements you make. “Opinions are like assholes, everyone has one but they think each others stink.” - Simone Elkeles
Thank you both for your input. A friendly reminder: this thread is titled 'Reasons why you should NOT trade cryptocurrencies'. There is a thread supporting cryptocurrencies by Leo23.
Cryptocurrencies are not without their pitfalls and you will need to be careful when handling your digital currency.
Before jumping into cryptocurrencies, do your research. No single guide will ever be able to cover everything you need to know about all cryptocurrencies. There are too many to cover in one document and each cryptocoin brings its own pros and cons. Additionally, you will need to understand how exchanges and wallets work. So before you do anything, make sure you read as many guides as you can, find reviews and try everything out with small, disposable amounts of money.
There is no safety net when working with cryptocurrencies. There are no police to make a report to if your money gets stolen; there is no bank to protect your money. With the freedom to do whatever you want with your own money anonymously comes a lot of responsibility. Here are a few tips: > Before you send cryptocoins to someone, always double check their wallet address. > Never hand over products or services before the transaction on the blockchain is verified. This might take up to ten minutes on some blockchains. > Always keep the computer on which your wallet is installed safe and clean from viruses and malware. > Never lose your wallet password. You might not be able to get it back and every cryptocoin you own will be lost.
Bitcoin and cryptocurrencies in general often suffer from sudden dips in value. Whenever purchasing cryptocoins – or investing in them – always be aware that the value of your holdings can fall.
Of course this could work in your favour if it goes the other way. Always be aware that the cryptocurrency market is extremely volatile and past performance is not indicative of future performance.
Why Bitcoin Is the MySpace of Cryptocurrencies, But the Blockchain Is Here to Stay (November 22, 2017) Why blockchain, not bitcoin, is the real treasure of cryptocurrency. https://www.entrepreneur.com/article/304134
Some brokers lost a fortune on crypto currency trading yet have remained silent. Our advice: Stay away (December 19, 2017)
'...Brokerages offering unrestricted Bitcoin trading are suffering tremendous losses which in some cases have caused large firms to stop paying their affiliates. The sooner this ‘crypto mania’ is over, the better for everyone, brokers, providers and traders alike.'
'Airware – sarcastic software industry terminology used in the late 1990s for a non-existent product – could be an appropriate label for the latest buzzword that is proliferating the internet, that being ICO.'
'Israel Securities Authority chairman Professor Shmuel Hauser states that binary options fraudsters are moving to cryptocurrency and ICO fraud, highlighting FinanceFeeds’ perspective on this matter. Here is the full insight'
'This is a perfect vehicle which binary options fraudsters can adapt the very same binary options platforms and use the same marketing/hard sales model to gain deposits as they did with binary options, except with even less recourse for investors, because, unlike binary options, they cannot make a claim that they were wrongfully sold a trade on a financial instrument, as the item they are investing in does not exist, neither does the currency to buy it – which is known by the investor from the outset, hence the scammers can just simply steal it, and they say that the item never came to fruition and because cryptocurrency is distributed, there is no central system to intervene.'
'Since the failure of the State of Israel to have addressed the massive and largely fraudulent binary options underworld that has permeated the public arena and created tremendous discourse over recent years, the United States has begun to pick up the baton.'
Britain’s FCA takes a very dim view of cryptocurrency CFDs and views them as insidious as binary options – which is about right, given that most of the ICO and crypto platforms are being hawked by the very same fraudsters who peddled binary options
“Could we see another global crisis of this type in the future? The bursting of a bubble would have to lead to a sufficiently large wealth loss. An obvious candidate is the bond bubble; and another - perhaps in the future if the corresponding bubble continues to grow - is the Bitcoin.”
... A bubble or not? The Bitcoin debate goes on and on. Some claim it's a bubble. Others say it isn't. Still, others say it can never be a bubble.
The theory of money thesis implies that everyone will want to own bitcoins. At best, that's quite a leap of faith. We've heard the same argument regarding gold countless times. The argument is along the lines of 'If people just put 2% of their assets in gold, it will hit $10,000.' Bitcoin supposedly will hit $1,000,000 when everyone gets in.
So what? Is Bitcoin a commodity? The answer is yes. It has value if for no other reason that people attribute a value to it. Is Bitcoin money or does it function as money?
What happens at every bubble peak is the true believers come out with a cornucopia of reasons why things are not a bubble. So please don't say that Bitcoin cannot be a bubble simply because it has commodity value or because convoluted interpretations of a theory by George Soros say so. The main uses of Bitcoin are undoubtedly speculation, capital flight out of China, and money laundering. Remember the dotcom bubble when speculators were clamoring for leap options on a company called JDSU. The day those options became available marked the top. The fact that Bitcoin futures and ETFs are in the works are more signs of a speculative mania.
Do not be afraid and trade in cryptocurrencies. While there is such a possibility. But I think it was necessary to start earlier when the crypt was just start it's way. Now it really looks like a bubble that will burst soon (or not). Just don't invest too much of your money in it.
@RudolfSAnt@Skater I agree with you - to an extent. Speculation is fine: if you are happy to speculate on horses, football, casino, HYIPs and Ponzi Schemes, then cryptocurrencies is perfect for you. At least 'gambling' is a regulated industry: HYIPs, Ponzi Schemes and cryptocurrencies largely UNREGULATED.
CFTC chairman J. Christopher Giancarlo: 'reminded investors that virtual currencies technology is very new and introduced risks such as the “operational risks of unregulated and unsupervised trading platforms; cybersecurity risks of hackable trading platforms and virtual currency wallets; speculative risks of extremely volatile price moves; and fraud and manipulation risks through traditional market abuses of pump and dump schemes, insider trading, false disclosure, Ponzi schemes and other forms of investor fraud and market manipulation.” '
I differ from this, because the cryptomonedas are the fashionable financial product. In one year its value has multiplied by 17 and in the last three weeks, by two, turning into millionaires many geeks and digital enthusiasts who had invested years ago. No one knows how far it will go and neither do we; The only thing experts agree on is that investing in it now is a great opportunity.
Unlike fiat currencies, and even unlike commodities such as gold, which are quasi-monies with a 'reserve of value,' the supply of each currency is theoretically finite and usually known in advance. Blockchain technology keeps track of all existing Bitcoins, including who is the owner (or the ownership key, to be exact) and issues a fixed amount of Bitcoins every 10 minutes to a computer that has contributed a minimum amount of work to maintain the blockchain technology that acts as Bitcoin operating system. Currently, it is known exactly how many Bitcoins exist because each Bitcoin that was created is registered within the Bitcoin system. So if it's good to invest in cryptocurrencies.
The striking growth of bitcoin in recent weeks has not been enough to quell the doubts generated by a market that offers huge returns but is not subject to regulatory controls. However, the increase in its value has been overshadowed by the explosive rise of a much less known cryptocurrency.
Ostrzeżenie o wysokim ryzyku: handel walutami obcymi wiąże się z wysokim poziomem ryzyka, który może nie być odpowiedni dla wszystkich inwestorów.
Dźwignia stwarza dodatkowe ryzyko i ryzyko straty. Zanim zdecydujesz się na handel walutami, dokładnie przemyśl swoje cele inwestycyjne, poziom doświadczenia i tolerancję ryzyka.
Możesz stracić część lub całość początkowej inwestycji. Nie inwestuj pieniędzy, których nie możesz stracić. Zbadaj ryzyko związane z handlem walutami i zasięgnij porady niezależnego doradcy finansowego lub podatkowego, jeśli masz jakiekolwiek pytania.
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