I hate to say I told you so, but I did repeatedly. Cryptocurrency has no solid plan behind it, apart from what ironically speculators call the best and most profitable trend of the future! The reckless fund has crashed from an all-time high of upper sixty thousand dollars per Bitcoin to a bear market investment of just 20K, meaning that if you had bought it at its peak, you would be down as much as 70%, or your original investment would be worth just 30% of the initial stake.
Hopefully, you don’t have money invested, or if you do then with any luck your purchase was made before the nosedive performance currently being experienced. Personally, I’ve never been a believer due to cryptocurrency’s volatile risk element, and because decentralization of online payments can only encourage chaos when the worldwide financial market needs stable centralized control and transparency. Crypto is digital currency for making online payments, however, in a democratically governed system it doesn’t conform to law and order.
In the Wikipedia it says, “In modern politics, law and order, also known as the war on crime, is the approach focusing on harsher enforcement and penalties as ways to reduce crime.”
Clearly digital payments via cryptography encourage a decentralized system which provides confidence to unlawful practices, as there would be no control over financial transactions that could be funding terrorism, tax evasion, and black-market business.
Although the concept makes sense, as money transfers are automatic while immediate deposits in receiving banks, there needs to be centralized money control to avoid money laundering. Now that PIX has been established it intends to make international money transfers automatically in 2022.
Though entrepreneurs are known to take risks, I think those investing in cryptocurrency are barking up the wrong tree, as the chances of long-term success in a democratic state just don’t go hand in hand.
Of course, decentralization is the topic of the moment, as those good doers believe in control for people to make their own decisions. Though the idea seems like a good one, the reality is world order needs rules and regulations to reduce malpractice whether liked or not.
My view could be lacking good judgement due to my inept knowledge of financial trends, so if you have another opinion all due respect. I’ll leave you to make your own conclusion.
Take care!
Prof. Carl Boniface
Vocabulary builder:
Peak (adj) = top, topmost, summit, tip, (ant) bottom, the pointed top of a mountain. (n) “The snowy peaks rose against the blue of a cloudless sky.”
(v) reach a highest point, either of a specified value or at a specified time.
“Its popularity peaked in the 1940s.” (adj) greatest; maximum. “He did not expect to be anywhere near peak fitness until Christmas.”
Reckless (adj) = irresponsible, wild, thoughtless, uncontrolled, careless
Nosedive (n) plunge, drop, descent, dive, a steep downward plunge by an aircraft.
Enforcement (n) = implementation, application, execution, administration
Black-market (n) = illicit trade in goods or commodities in violation of official regulations also: a place where such trade is carried on.
Money laundering (adj) = the concealment of the origins of illegally obtained money, typically by means of transfers involving foreign banks or legitimate businesses. "He was convicted of money laundering and tax evasion."
Barking up the wrong tree (idiom) = be pursuing a mistaken or misguided line of thought or course of action.
Malpractice (n) = misconduct, negligence, abuse, dereliction, mismanagement, misuse, unprofessional conduct
Inept (adj) = incompetent, inexpert, clumsy, ham-fisted, maladroit, useless, unskilled, heavy-handed, (ant) competent