by OldGuy » 08 Feb 2018, 03:44
The entire concept of cryptocurrency is still in its infancy. Yes, it has been around since 2008 or 2009, but that only means it is still very new. When it has been around a couple hundred years, the bugs will have been worked out of the system and it might then be considered something reliable ... maybe.
Any wealth in cryptocurrency is still only an electronic blip, at least in its current form. There is nothing behind it except what investors are willing to pay. Astonishing changes in value come on a whim and investors can gain and lose tens of thousands of dollars (or whatever value is attributed to it) in a blink of an eye. Bitcoin has already demonstrated such wild fluctuations in value and it is certain more extreme value swings are in the future, both up and down.
Hackers have already attacked the system several times. If you somehow lose your account number or password, you could lose your entire account. Since there is no government involved at all, there is no control, but there is also no protection for any losses.
Governments around the globe are looking at the existing system to figure out how to tax gains. They will eventually figure out a way to nail those who have reaped huge profits without declaring their gains as income and they will eventually come to get you. Lots of criminals in history may have been able to stay out of prison because there was not enough evidence to convict for their crimes, but they end up spending the rest of their lives behind bars for tax evasion. The most famous criminal in the US who ended up that was was Al Capone. Look him up to see what happened. He was just one famous example but he was not the only one.
On top of everything else, cryptocurrency relies on a dependable electronic network and easy access to the Internet. Regional blackouts are common. Some blackouts may only last a few minutes or hours, but what will you do if you if you have no access for weeks, months or even years? It can happen. What if you cannot access your electronic accounts?
For now, any cryptocurrency is only speculation. You might be be to invest and take some huge profits, but you could also lose everything you invest in seconds. It is a very high risk investment at best.
Unfortunately, the world relies on "fiat currency", which is money printed and circulated by various countries. They are only backed by faith in the government that supplied the currency and could also fall to zero value if the country behind them collapses. Recent changes in laws around the globe allows banks to seize any money deposited to pay their own debts leaving you with worthless stock in the failed bank as your only compensation. There is no longer any real faith in fiat currency either. None are exempt from a complete collapse.
Gold and silver have the longest history as currency in the world. They do not rely on any government for stability. Although they don't offer much incentive as investments, they do offer insurance that you might still have something of value if the economic system of the globe fails, and that part is a very real possibility.
Invest extra funds in cryptocurrency, but not more than you can afford to lose. At the very least, Insure your own future with some part of your investments in something solid, like gold or silver just in case everything else fails.
