Trading Bitcoin, Altcoins and ICO’s
Trading crypto currencies (or altcoins) is the newest form of legal online gambling available around the world. And like online gambling, there are many scammers and frauds trying to steal money from people interested using this new technology that we call crypto currency.
There are also many financially savvy individuals who understand trading financial markets better than most of us. Many wall street traders have entered into crypto trading to clean up, while non-traders become aware of this new digital money and “invest” in some good and bad crypto currencies that are being created every day.
We are very bearish on crypto trading, the price of bitcoin or any alt-coin while this new technology (and how it ties into the global financial markets) is changing daily. For the few altcoins that have good use cases, solid development teams and actual products released to the public, we do see value in some of these coins and tokens being offered as “investments” in these technologies.
However, a lot of altcoins appear closer to sports betting and casino gambling than anything else online, hence the spiffy name of our site.
Things to consider when trading and “evaluating” the “value” of crypto currencies, tokens or alt-coins.
1. Wall street traders, large financial institutions, even financial regulators are wrong about investing constantly.
2. The dot com bubble was a result of investors over estimating the value of a new technology long before it was useful.
3. An ERC20 Token can be created on the Ethereum network in 20 minutes and selling only a few minutes later.
4. ICO‘s releasing token’s on ERC20 are commonly relying on the security and stability of the Ethereum network for their token to be considered of value. If the project using an ERC20 token has a great product released but the Ethereum network (for argument sake) crashes, “investors” could lose their investment.
5. A crypto currency is only as valuable as the development team behind the project and their ability to scale that project.
Most “crypto currency investors” are investing in development teams they have never met or worked with. The difficulty to get involved with Bitcoin Core makes it unlikely developers better than the developers working on Bitcoin will create an altcoin that is “better” than Bitcoin.
6. The daily and monthly change in the price of Bitcoin (or any altcoin) don’t matter to the adopters of a crypto currency that see value in it. It only matters to wanna-be day traders and people buying bitcoin in an effort to get rich.
Bitcoin
Altcoins
