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Should I Invest in Cryptocurrencies?

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should you invest in cryptocurrency

Should you invest in cryptocurrency? Read this before deciding to invest in cryptocurrencies in 2019

No one can answer that question with an overly optimistic yes or an affirmative no unless they have something to sell.

We at crytpotapas.com will give you 10 reasons for investing in cryptocurrencies and 10 reasons why you may consider not to invest. What you conclude from this information is up to you.

Due to the sheer size of this article – we will break it into 2 parts. In part 1, we will discuss the 10 Reasons, according to us, that support investing in cryptocurrencies. 

10 reasons that support, in our opinion, investing in Cryptocurrencies

1. Possible opportunity to turn a small investment into a sizeable portfolio

If you had invested $300 in Bitcoin when it was trading at $3 in 2011, you would be sitting on $350,000 even in today’s bear market. If you managed to sell it during the high $19000s, you would have made 1.9 Million dollars. That is 6333 times your original investment.

And yet, those gains are nothing compared to 15819 times (that’s 1,581,900%) gains that people have reaped on investments like Verge. That means same $300 investment in Verge would have yielded you $4.75 Million dollars if you sold at right time.

Other projects like Stellar, Ripple, ICON have all done more than double/triple digit timers from their initial price to their peaks.

Possibilities like those are what keep people coming back to this space, to try out their luck. It is no different than gambling, it can become an addiction too.

As long as you invest responsibly – there is a lot of room for growth in this space according to many veteran investors.

2. Follow the money: Institutional approval

Fidelity is starting their crypto fund in 2019. Bakkt, a NASDAQ initiative, is going to offer physical delivery of Bitcoins starting 2019. VanEck’s ETF has been long pending in front of SEC and is expected to bring institutional money into Cryptocurrencies.

Yale University’s economist Aleh Tsyvinski’s report talked about the potential of cryptocurrencies and made a note about including 6% Bitcoin in one’s portfolio for a well-diversified structure. What more, Yale’s endowment manager has invested in two funds dedicated to cryptocurrencies.

Veteran investors like George Soros, Mike Novogratz, Steven Cohe, John McAfee and Tim Draper have not only invested in crypto but they have made outlandish predictions about Bitcoin’s price for the coming decade.

Coinbase has started adding new digital assets to its platform and is expected to increase the number of offerings in the future.

You can view all the institutions that have set their foot into this space in this article on compilation of Bullish signs.

Enterprise blockchain adoption – Big companies like Walmart are investing heavily into blockchain solutions. The promise of blockchain in the supply chain, in particular, is massive. In fact, more than 80% of Fortune 100 companies have explored Blockchain in their businesses.

So, the institutional money is not just flowing into this technology as an investment in cryptocurrencies but the blockchain solutions as well.

3. Follow the talent: Mass exodus of Wall Street talent to Crypto

Many individuals have recently left their high-paying jobs in Wall Street to join the Crypto Street. Chris Matta, Goldman Sachs executive left his earned bonus on the table to start Crypto project.

We have provided a brief list of professionals that left their secured-high potential-jobs to take part in the blockchain and crypto revolution. You can access the list here.

Timothy Tami left his Wall Street glory for Crypto. He is now the CEO of CoinFi. Bloomberg even ran an article on professionals from Goldman Sachs, Deutsche Bank, Blackrock, etc. that have left their Wall Street race to join Crypto race.

One major indication of the potential for any new technological advancement is the adoption and adoption will never come to space if talented individuals do not see the promise. Right now, many highly talented individuals see the disruptive potential of Blockchain and Cryptocurrencies. This is a powerful indicator in our opinion.

4. Millennials lack trust in Wall Street

35% of the workforce today consists of Millennials and Millennials do not trust Wall Street. When the largest working group does not trust in Wall Street, unless something changes, investment in traditional asset classes are going to dwindle in the coming decade.

Close to 50% of Millennials said they were interested in Bitcoin (and Crypto) investment and 30% felt they would rather invest in Cryptocurrencies than the traditional stock market. When major institutions like Fidelity facilitate investing in Crypto (and Bitcoin) – it will not be a surprise that more and more investments will flow into Cryptos and propel this space to new heights.

5. Security Token Offering (STO) is coming, and it’s a big deal

We were obsessed with how Cryptocurrencies have disrupted the venture capital and crowdfunding platforms through their Initial Coin Offering (ICO) craze in 2017, but imagine what will happen when traditional capital is raised through security token offerings?

The possibilities are just boundless.

You could have a company raise money through an app, like the WeOwn (CHX), communicate with the investors via App, maintain investor registry (called Share Registry) through automated Blockchain enabled platform – all of these could result in potential savings in Millions of dollars and make capital accessible to companies and ideas of all sizes.

In fact, the tokenized economy may not be that far a reality either. Overstock owned tZero has recently announced a successful raise of $134 million via STO.

“This is one of the first Security Token Offerings on a decentralized public network, and was conducted in full compliance with the U.S. securities laws,” said tZERO CEO Saum Noursalehi. “This is an exciting milestone for tZERO, and we are even more enthusiastic about the opportunities this will create for private and public companies wishing to raise capital through security token offerings, and for investors who wish to trade those securities.”

STOs are coming and they are coming fast.  Our bet is that we will start trading in STOs by 2020.

6. Blockchain and Cryptocurrencies are paving the way to the global decentralized economy

Blockchain use cases are numerous. World Economic Forum has identified over 65 use cases of Blockchain. Most of these use-cases cannot work with the existing fiat system.  They need a special on-platform currency. Cryptocurrencies associated with projects that will have wide use-case and adoption will inevitably increase in value.

Ethereum, for instance, has the largest network of business partnerships in the blockchain space. Bitcoin is preparing to enable smart contracts using RSK protocol. NEO has been spreading its roots in this bear period. ICON has been signing business deal after business deal to hyperconnect the world.

Blockchain’s success will inevitably contribute to the wider adoption of cryptocurrencies, however, only a fraction of the existing projects will survive for the wider adoption – but those that do survive will probably be worth a lot more than what they are today.

7. Gamification of investment when it comes to crypto space

investing in cryptocurrencyLet’s say you decided to stay home during the weekend and saved $50 that you would have spent at a restaurant – you saved another $50 by not going to the movie theater and ordering a video on demand. For that month, if you put this $100 into the crypto market and even if you lost it all you have just lost a weekend’s worth of entertainment, not your life savings.

Gamification strategy of investing in crypto could be a better way to stay indifferent to the volatility in this space.

Trouble comes when people go out of their way to take loans or invest their life savings into the crypto market and panic sell during lows.

There are few solutions that are currently in works where you can copy successful traders and invest (even a little) to follow their trades – automatically. That means – you choose who you would like to follow, pay the fees and system just mirrors those traders for you while you go on with your life.

Whatever your investment strategy is in crypto space – always remember that there are no experts who actually know what is going to happen in this space in next 2 or 5 years – and every decision you make is subject to a complete loss or gain. And neither is guaranteed.

8. Some of these crypto projects may be future FAANGs

investing in cryptocurrencyFAANG stands for Facebook, Apple, Amazon, Netflix, Google. During the burst of the dot-com bubble, Amazon lost 90+% of its value.

Amazon went from trading in early 100s to $7, over 90% loss of value.  However, those who stuck with the company are now sitting on a $1500 stock, over 214-fold gain from its low.  Many refer to the current market situation to that of the dot-com bubble, meaning, most of these 2000 odd projects will not be around in a couple of years but those that do survive may be worth 100’s of times their current valuation in the next decade.

Speculators believe that projects like Bitcoin, Ethereum, Stellar, Cardano, NEO, Ripple etc. may have the potential to withstand the bear market turmoil and emerge as winners. If we see any mass adoption of this technology – those that survive may become big brand names in the coming decade.

9. Market consolidation – potential entry point for new investors?

invest in cryptocurrencyBitcoin has gone from $19,000 at the end of 2017 to $3,400 at the time of this writing, 83% fall from its peak in 2017. Some speculators expect that Bitcoin may fall even further. While it should scare many traditional investors – some investors in crypto space are waiting in anticipation for an opportunity to own a full bitcoin.

Coinbase has added other assets in addition to Bitcoin, Ethereum and Litecoin. It gives average individuals an opportunity to own projects outside of these 3.

Coinbase has created space for those that are thinking about investing a very small amount in this space. You can save $10 (it pays us $10) if you use this referral link (totally optional).

10. Future of pay-as-you-go, joint ownership among strangers, and the shared economy will be built on Crypto-economy

invest in cryptocurrencyIf you think Uber and Airbnb are greatest things that happened in a shared economy, wait until we enter into a new age of shared ownership and shared revenue-based economy. CBRE’s David Cervantes opines that in future we may be able to tokenize the traditional Real Estate market.

Imagine a world where you own 1/1000th of a hotel and you get 1/1000th of revenue sharing. Imagine helping an entrepreneur 1000s of miles away with his/her business idea by just investing a couple of bucks?

A world where there are:

  • No minimum investments
  • No minimum revenue sharing
  • No border walls for innovation
  • A global commerce accessible to micro, small and medium enterprises
  • End of 9-5 job culture and the dawn of Gig economy that is not limited by geographies

Pay as you go models for what is now expensive machinery accessible only to big guys, for instance, instead of needing to own a supercomputer, which also has limits, to conduct a research – you could rent a global supercomputer that has no scaling limits, for as long as you need it, thus removing the fixed costs and making research accessible to developing nations.

All of these wonderful things can one day be made possible because of Blockchain and Cryptocurrencies.

The case for blockchain and cryptocurrencies may seem all rosy – but anyone who has been following the news will immediately realize that it is not so.

Go to Part 2 to read the 10 reasons why one may not want to invest in cryptocurrencies, reason 2 and 10 are interesting.

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IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

CryptoTapas does not endorse or guarantee the accuracy of the information and claims made in respective publications referenced in this database.

About the author

RK Reddy holds two Masters degrees, one in Accounting and another in Business Administration with over 15 years of experience in the financial services industry.

RK Reddy is an ardent fan of Blockchain and Cryptocurrencies. You can see the excitement about this new technology in every article on Cryptotapas.com. Sometimes this excitement leads to an overly optimistic view. Guilty as charged. RK Reddy says what may seem like an ‘overly optimistic expectation’ today may become an everyday norm in 5-10 years; look at the history of cars or airplanes, Blockchain and Cryptocurrencies belong to a similar frame of reference.”  Of course, that is just his opinion.


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5 questions we want XRP army to answer!

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xrp investing news

What follows is our opinion.  

Let’s not be hostile.  

Top 5 Cryptocurrencies 2020

We are simply posing some questions based on the information we came across and our own limited interpretation. 

It is quite possible that the sources we are referring to are at fault or our interpretation is. Either way, just answer these questions for us so that we can learn new things about XRP that we did not know.

Our readers know that we have been anti-XRP for a long time. We got trolled, mocked and called ignorant. Well, to each their own.

Our questions to the entire XRP army are simple, here they are:

Question 1: If crypto was to replace (or at least reshape) the entire banking business then what does a token whose sole business model is based on ‘accommodating’ banks have any future?

To put differently, when the world starts conducting commerce via text messages why do we need banks and Ripple which wants to serve banks?

Our basis for this question: 

In the future when we will start doing business with each other over text messages, wallets and email signatures, why do we need a payment gateway from Ripple?

We know that WeChat payment enables users to transact over chat.  Other companies are trying to catch up with this (primarily why Facebook was looking at creating its own currency, Libra).

However, once we have a digital dollar, we do not even need an outside stablecoin since one could, in theory, use the digital dollar directly.                  

Question 2: Why do you have to pay businesses to use XRP if it is so superior?

Our basis for this question: 

Financial Times reported that Ripple paid Moneygram to use Ripple technology.

Here is a direct quote:

It turns out Ripple has been paying a significant amount of subsidies cash to MoneyGram’s business since buying into the company in June. In the third and fourth quarter alone the Ripple benefits amounted to $11.3m.

What’s more, until a consultation with the SEC**, MoneyGram had been more than happy to book these cash flows as revenues. Due to the SEC guidance, however, it has now had to restate fourth-quarter guidance to account for Ripple payments as “contra expenses”.

XRP Twitter

Question 3: What is Ripple’s revenue worth without the ‘selling’ XRP?

Our basis for this question: 

The question seems to be answered by the XRP’s CEO himself. Here is an excerpt:

Asked if XRP was keeping everything cash flow positive at Ripple Labs, Mr Garlinghouse answered: “Well XRP is one source. I don’t know how to answer that because if you took away our software revenues, that would make us less profitable. If you took away all our XRP, that makes us less profitable. So I don’t think about it as one thing.” 

He clarified later: “We would not be profitable or cash flow positive [without selling XRP], I think I’ve said that. We have now.”

In our opinion, we think that the only reason Ripple (XRP) is even operational is because of the billions upon billions of XRP tokens that they keep dumping on the unassuming investors.  

Is this a wrong assumption?

Question 4: If Ripple does not need XRP, why is XRP needed?

Our basis for this question: 

This is based on our understanding that Ripple’s technology can be used by the businesses without having to use XRP.  It is recommended but not ‘required’.

Is this accurate?

Ripple’s solutions can work without XRP (its native token).  So, if XRP is not a utility token in strict sense, how are its creators able to mint and sell them at will without tripping any security laws?

Question 5: If Ripple [XRP] is to act as the ‘stable’ value while the transactions take place on Ripple network, why should anyone trust XRP which is backed by nothing instead of stablecoins like USDC that are backed by real world assets?

Our basis for this question: 

We would personally trust USDC more or even Facebook’s Libra rather than XRP which is backed by nada.

This is what Demelza’s opinion was during our interview:

“The main point is that if XRP were able to back their currency with financial assets and stabilize the purchasing power of the currency, then that would mean XRP coins should have no price appreciation. In fact, only the equity shares of Ripple Labs would profit from XRP’s adoption as a global reserve currency. But Ripple Labs is a privately held company. After fully understanding what XRP is, one realizes that XRP’s investment pitch does not make sense at all.”

Conclusion

We are trying to convince ourselves as to why we need Ripple in the crypto space if:

  • Future of payments is going to be ‘self-bank’ & over the chat
  • There are better stablecoins in the market 
  • Ripple itself as a technology doesn’t need its own native token, XRP

For this very reason, our opinion is that the money will flow out of XRP and the creators will keep dumping their bags into the market until the market can no longer absorb it and then it will be ‘lights out’.

We await for the XRP army to provide us insights that we did not know and our opinion changes…

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

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IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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DeFi is Not the Holy Grail of Crypto, Here is Why

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Defi Yfi

DeFi has been making millionaires overnight and turning millionaires broke at the same speed.

Those who are on the bandwagon are rejoicing and those who either missed out or got burned by one of the fake projects are yelling ‘Scam’ at DeFi.

Top 5 Cryptocurrencies 2020

Our views are a bit different on the subject.

We do think DeFi is going to be a successful vertical among the blockchain (and crypto) solutions.

It will not be THE holy grail for the redemption of crypto status though.

Supply Chain, Crypto Lending, Insurance, Financial Services, Accounting, Identity, and many more verticals will collectively take blockchain and crypto to the masses.

Shifting our focus back on DeFi, here are some of our thoughts on the current state of DeFi. We do appreciate you dropping any insights you have that we might have missed.

DeFi is not a ponzi, here is why

If the DeFi project you are eyeing meets the following conditions, it is not a ponzi:

  • Audited code: Is the code on which DeFi runs is audited by reputable blockchain auditors? 
  • Reliable team: Who is behind the project? Do they have the know-how? Do they have a history of running scams or leading successful projects? 
  • Actual (sustainable) revenue model: What is the revenue model?  Is it too ‘scammy’ sounding or is it based on sound mathematical (and algorithmic) models?
  • No lock-in periods: Is it easy to get in and out of the platform without any restrictions or lock-in periods?

If you answered yes to ALL of these questions then there is a 100% certainty that the DeFi you are dealing with is not a ponzi (or scam).

However, a caveat is due here.  

Just because the project is not a ponzi doesn’t guarantee its success. Lot of well intentioned companies fail, that’s just the nature of business.

So, do not be one of those guys who sells their home to invest in crypto or DeFi (and that itself is not advice, just an opinion).

If you don’t want to hear it from us, listen to what Yearn Finance creator has to say about DeFi tokens (not all, obviously) having ZERO value.

Source: Crypto Culture

DeFi on Ethereum is not sustainable, here is why

Ethereum DefiMost, if not all, DeFi projects that are making the news today are on Ethereum. 

Ethereum is not a reliable blockchain when it is overloaded.  It gets choked and crashes.  

People are already complaining about exorbitant fees on the network due to the DeFi craze.  

DeFi itself as a crypto vertical is quite new and we are sure there are going to be a lot of ‘killer apps’ that will show up on the scene.

We are currently looking at the DeFi solutions that are being built on other blockchain networks (subscribe for free to know when we post that article).

PolkaDOT is not the end all be all, here is why

Polkadot Defi EcosystemMany are turning to the DOT as the next big thing after Ethereum.

It may very well be.

However, it has not had the chance to prove itself, not yet.

Ethereum’s resilience (or lack thereof) was revealed only during the ICO craze (and then later during CryptoKitties debacle).

What monsters lie in the DOT’s belly?  We don’t know and we would be weary of anyone who claims to know with certainty.

Other things to consider

Entire DeFi space is pretty new and we do not know what we do not know about potential vulnerabilities.

While this is true of Bitcoin itself, Bitcoin has withstood assault for over a decade and still stands stronger.  

Same cannot be said about DeFi.  

Can you imagine someone investing their life-savings into DeFi only to have funds taken because of a bug in the code?

Needless to say, many folks are exploiting the looping system in the DeFi where they take loan against their deposit then lend it back to the platform to take another loan against their deposit, and ad infinitum.

This is causing the DeFi systems to show more liquidity than what truly is.

Conclusion

We think DeFi is an exciting development, however, we still put it alongside ICO craziness for now.

When this space matures and we see reliable solutions emerge – DeFi has the potential to drive a trillion dollar vertical on its own.  

That is just the potential, all the trials and tribulations that we have to go through to get there is going to be one hell of a ride.  

So buckle up and enjoy (and please do not lose your shirts on the ride)!

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

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IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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These forgotten gems could resurge during this bull run

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Forgotten Crypto Gems

Forgotten Crypto Gems

Disclaimer:  We own few of these tokens and there is no guarantee that these coins will actually resurge. Everything you are about to read is an opinion.  Our intention is to put some projects that have taken the backseat in recent times.

If you are curious as to why we give away so much for free – please check this Crypto Freebies page.

Top 5 Cryptocurrencies 2020

Crypto market is quite weird.  

It deceives the onlooker as if it’s learning from its past mistakes but it’s really not.

For instance, during the 2017 ICO craze, anyone could pitch any half-assed idea and raise millions from unassuming investors.

This bull run in 2020 is all about DeFi and Data Oracles.

Just slap ‘DeFi’ to any project without an actual product or even a single line of code written and you will make a boatload of money.

Because the ‘pump and dump’ practices are not closely monitored in the crypto space, many YouTubers are dumping their bags on their viewers.

It is so blatant that the YouTuber will start out saying “I loaded my bags with this” and then go on about all the mooning stuff and throw in a small disclaimer somewhere and voila. 

They make hundreds of thousands or even millions each day. And we are not exaggerating about that.

You contrast that with what you find here.  

We are giving away all the information we are digging up for free (including our Top 5 tokens for the next decade that we hope will 100x).  If you are curious as to why we give away so much for free – please check this Crypto Freebies page.

We recently started the microcap gems series where we are looking to dig up projects with a decent team, an actual product and lower market cap (usually under $5 Million, sometimes even less).

Because of the $$ limit on the microcap gems, there are some projects that we couldn’t cover in that series.

However, we wanted to float these projects in front of the discernible audience (and newbies who may not have looked into these).

This article’s sole aim is to ‘point’ you to these projects. It will not be a deep dive and as always we encourage you DYOR before investing.

Dragon Chain

Dragon Chain price prediction“Dragonchain is an enterprise and start up ready platform to build flexible and scalable blockchain applications.”

Like most projects we pick, Dragon Chain has solutions ready for business today.  This is not a pipedream or a 15 year roadmap.  That is why we think this is a forgotten gem.

This project is still going strong in the background in terms of development and traction.  They released a video in August about how their anti-fraud and transparency proof systems are used by an exchange.

Website: https://dragonchain.com/

Ticker: DRGN

ATH: $5.27

ATL: .02

Current Price: $0.079

Cindicator

Cindicator CND price prediction

“Cindicator builds predictive analytics by merging collective intelligence and machine learning models. Cindicator’s analytical products are available exclusively to holders of CND tokens.”

Market pays top dollar for prediction data.  Cindicator is one of the first projects to build an AI based market intelligence platform on blockchain.

Cindicator boasts over 135,000 analysts from over 135 countries.

In our opinion, Cindicator is a viable project, although it has not gained traction.

Website: https://cindicator.com/

Ticker: CND

ATH: $0.347

ATL: $0.002

Current price: $0.011

FunFair

Funfair Price Prediction

“FunFair is a revolutionary blockchain technology platform that provides low cost, high quality, transparent casino experiences that are Guaranteed Fair.”

The space that FunFair is targeting is a massive one and is expected to grown even more in the coming years.

Ticker: FUN

ATH: $0.33

ATL: $0.0010

Current price: $0.0052

This page will be updated with future ‘forgotten gems’, so please consider subscribing

Acronyms used: 

ATH: All Time High

ATL: All Time Low

DYOR: Do Your Own Research

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

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IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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