The world of cryptocurrency is incredible. We’ve said it before, so we’ll say it again…
There is nothing else that comes close to the excitement and opportunity of crypto.
In over a decade in financial markets, there has never been an event like this. There has never been a wealth creation even where everyone has a chance to get in on it.
Even investing in stocks you can make incredible returns. You can make returns of 100%, 500%, 1,000% and more. I know this because I’ve made stock recommendation in Australian Small-Cap Investigator that have achieved these kinds of returns.
But sometimes those returns in stocks can take months to play out, sometimes even years.
What I’m seeing in cryptocurrencies right now has the potential to achieve those kinds of returns in days. Now that might seem crazy. But I suggest you go to icostats.com and have a look for yourself.
While there are big gains up for grabs in cryptocurrencies, I should make something very clear. This is not for rookies. If you’ve never bought or sent crypto before, then this isn’t something to throw money into blindly.
It is risky, unpredictable, and there’s a lot to be careful about.
Even as bullish as I am about the long-term future of crypto, it still has problems. And some of these problems do create real danger for people new to this exciting world.
That’s why you’ve heard me write about the great things in crypto before. But it’s time to also alert you to the dangers of crypto. Today I’m going to outline three problems with crypto, that you must be aware of if you want to operate in this world safely.
Thinking of crypto in fiat money.
Almost every person getting involved in crypto today views the gains and entry price of a crypto in fiat money.
It’s hard not to. After all, everything in our world is priced in dollars and cents.
That cup of coffee costs $5. That car costs $40,000. That stock costs $1.20. So when you buy a bitcoin for example you think of it as $5,000, not 1 BTC.
But you have to shift your thinking and see the bigger picture. If you only ever think of bitcoin in dollars, then you’re still anchored to the existing, ‘traditional’ financial system.
In the future your coffee, car, even stocks perhaps will be priced in crypto. It may be bitcoin, or it may be another. But the pricing mechanisms we use today will be non-existent. You will simply price things in crypto.
If I’m right, the earlier you can get to that space, the better off you’ll be. And the growth in your crypto will be measured in crypto. Not in dollars. Only then will you be properly free from the existing system.
Listening to the mainstream.
In short, they don’t know what they’re talking about. The reports you get in mainstream papers are based on journalists with a few months experience in crypto. They report on big name financial players from Wall Street and from government that also have only been involved in crypto for a short time.
And they all have their own agenda to push.
Their livelihood is built on the current, rigged, broken system. Their interests lie in dollars and cents. They don’t want crypto to succeed, because it threatens their existence.
They will criticise it. They will hammer it. They will want to see it fail. They will call it a bubble, and liken it to tulips. But their own hubris gets in their way. They can’t see the bigger revolution at hand. They can’t see that the world they’ve built is breaking up around them and being rebuilt in a better way.
The mainstream problem matters because they feed misinformation to the masses. But if you can ignore the noise and listen to the people that really know what’s going on, you can get ahead of the masses.
And if you’re ahead of the masses when they finally figure out what’s going on, you’ll already be maximising your crypto-wealth.
The hype of the ICO and the dangers of inexperience.
Right now, the biggest gains in crypto are coming from initial coin offerings (ICOs). Make no mistake, many of these ICOs are worthless. They are scams and there are people trying to fleece you of your money.
But there are many that are outstanding. Many that are developing some of the most exciting technology the world has ever seen.
Many are run by exceptionally smart people. They have real-world use cases, and will be the foundation of our future — financially, socially, economically, even democratically.
But if you are inexperienced in cryptocurrencies then it’s near impossible to sort the good from the bad and the outright scams.
If you get swept up in the hype without the right knowledge and expertise you’re destined to fail. But get it right, listen to the right people and get the right advice, and you could make a killing.
These three problems aren’t going to go away in a hurry. In fact, they may stick around forever. However, they’re all problems that crypto can deal with. They’re problems that prove to us that crypto is still very early stage.
These problems have all the hallmarks of a revolution that the world isn’t quite ready for, but which is happening anyway.
The exciting part of it all is that these problems become advantages, if you can recognise their existence.
That means by simply reading this and knowing how to deal with these problems, you’re three key steps ahead of the average punter who thinks they know about crypto…but really doesn’t.
This level of expertise you don’t get from someone who’s been around crypto for a year or six months. You only understand these problems in detail when you’ve been around it all as long as we have…which is extending to almost eight years now.
If we can help you safely navigate the world of crypto that’s a win in our book. If we can help you get involved in a wealth creation even that may never happen again, then it’ll be a win in your book too.
Editor, Australian Small-Cap Investigator