Crypto currencies are not mainstream…yet…
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I decided to write my humble Bitcoin ICO opinions after the 10th contact asking me: I had to guess it. Too many people claim to be blockchain experts according to what? Anyone calling for bitcoin brieftasche synchronisieren vonat is dismissed as an old bureaucrat stopping innovation, and protecting the unreasonably high fees of the bitcoin brieftasche synchronisieren vonat system".
Really, the current ICO technology, procedures, and bitcoin brieftasche synchronisieren vonat are not helping the average bitcoin brieftasche synchronisieren vonat, those lacking funds and searching honestly for help to create real projects, because scammers and "rich" founders can invest more in ICO promotion with misleading advertising, bribing influencers, etc. ICOs bitcoin brieftasche synchronisieren vonat not going to be a profit for the average investors since they will be misled to bet mostly on the wrong ICOs, including some that will be soon prosecuted as illegal with an obvious valuation crash.
Buterin, an Ethereum founder, proposed the "interactive coin offerings" crowdsale protocol, where buyers interact to specify desired quantities at each valuation, to reduce some ICO issues. A nice start, but more pieces are needed!
Investment bankers and VC fund managers are expensive. Some can be biased bitcoin brieftasche synchronisieren vonat do errors. Bitcoin brieftasche synchronisieren vonat humans, guess what. Wikipedia's " blockchain " page: The first distributed blockchain is fromused in the digital currency bitcoin ". This not so new peer to peer tech is useful only for decentralized applications: For example, to cut out intermediaries in bitcoin brieftasche synchronisieren vonat, contracts.
This bitcoin brieftasche synchronisieren vonat help where the value is known and certain: But the value of an ICO token is unknown and uncertain: It would require magic, parapsychology extrasensory perception, such as clairvoyance and precognition. VC guys have no paranormal sixth sense superpowersin fact, they pick several dead horses, not all unicorns.
Yet, just due to experience and researchstatistically, the "pro" guys pick mostly, reject at least a little better than the average crowd. Really, the same VC funds that invested one dollar in a "Google", also invested 99 dollars in other startups that mostly failed or kept up barely flat. The average crowd got too much confidence because at their first investment: For the rush, the fear of missing out, no time to check the details: Crowds only saw survivors like Apple or Facebook, no idea how many others failed.
Instead, professional investors and once failed entrepreneurs, both lost money, so know many fail stories and their causes. People only talk and read about inspiring but rare success storiesand ignore or forget all the failurescensoring useful failure lessons. Motivational life coaches are followed because telling good ending stories only.
No one wants to hear how and why any project failed. With only success stories in mind, you can't understand or try to predict failures at all. Lotteries got a single success story that everyone thinks about, forgetting the so many losers. Of course, some ICOs may end up in profit, as well as there is one winner at the lotterybut consider the probabilities: ICOs should replace not fully remove the classic VCs with cheaper experts, meant to guide the crowd investors, otherwise betting on self-destruction ICOs.
A small crypto crime world. Exchange services are very important. Crooks are paid in bitcoin for ransom bitcoin brieftasche synchronisieren vonatselling stolen credit cards or passwords etc, and that's the first part, but that's no cash.
Next, the crooks need to find at least a single rogue exchange in the world doing like the busted BTC-e: At least one rogue exchange always exists: About the honest usage, I helped a few online merchants to accept BTCs and Litecoin, but none had relevant cryptocurrency sales, because they sold legal goods: Anyone who visited China recently, noticed how there you can pay almost everything via WeChat with a cell phone: Or it's simply held, hoarded.
The original Bitcoin authors were totally honest and activistswanting the society to change into their ideal of "better". They probably avoided on purpose to make any profit on Bitcoin, despite their huge speculation opportunity Satoshi's coins are worth billions now, and he's not selling, that's since Around Bitcoin and ICOs you see too many bad guys doing the same as the old unfair society: Bitcoin confirmed the need for bitcoin brieftasche synchronisieren vonat regulation in any "system", else the bad actorsbe it just trolls, the Mafia, the Wolf of Wall Street or the devil himself, will crypto abuse the innocents.
Regulation can be automated in the blockchain, but Bitcoin left all the control to humanswho made guess what: Recently the bitcoin transactions became so slow, that you must pay high "fees"up to few dollars, or it will take days or even fail. Everyone can see that centralized Paypal or VISA systems are faster, cheaper, and consume less electricity. To make bitcoin useful outside the illegal and anarchic rings, and given its rising price, BTC was "forked" into a few upgraded versions.
Thousands of alternative coins were created, but no one replaced BTC for value or usage: The news and media talked about the original bitcoin only, no matter if old or limited, so BTC only was acquired by new investors. Why and how the Bitcoin price went up: More people purchased bitcoins to hold as long-term investment, making the bitcoin brieftasche synchronisieren vonat rise. Higher price news, in turn, convinced more people to buy, in a bitcoin brieftasche synchronisieren vonat bubble loop: But then there was the ICOs too.
Many potentially productive people were misallocated into the unproductive gold search activity: Inthe BTC price doubled in short time: This increasing money supply caused ICOs to raise millions within minutes: Too many ICOs are excuses to misallocate money from productive things into unproductive "investments": The BTC price doubled again, a more exciting news story. Bitcoin is a kind of user-based network economy: Bitcoin brieftasche synchronisieren vonat does not matter why it's usedlet Bitcoin be usable only for bitcoin brieftasche synchronisieren vonat laundering, drug pushing, speculation, gambling and tax evasion, these stable users alone would be enough to make it valuable.
It's not even required to use the bitcoins to grow their value: Hopefully, these holders gave a copy of their BTC keys to someone, else with a surprise death, no one heirs or else will be able to get inherited BTCs: It is estimated that 4 or 5 million bitcoins are lost forever, out of the 16 million in circulation: Bitcoin can grow in "value" even if not a "currency" or a "medium of exchange", which means, even if you'll never pay taxes, bills, salaries, or anything that is common, in Bitcoin.
It's enough to hold and rarely trade Bitcoin in exchanges, like with gold, as long as most people believe to get same or more cash in exchange for the coins. The printing of new coins is limited no central bank's induced inflationand lots of coins were lost deleted wallet files etc. Bitcoin brieftasche synchronisieren vonat ICOs, unlike BTC, seem a gold rush, where people are only believing a storyrather than willing bitcoin brieftasche synchronisieren vonat use a service or hold the tokens for the long term!
Are crypto tokens a stable economy or a blind faith bubble set to crash? Or both, it depends? I am not an economist, I don't know, no bitcoin brieftasche synchronisieren vonat. This BTC-only growth loop could have continued more, unchanged, but a shortcut to richness was created: No one seems to remember that between andat least alternative coins tokens was already created, and all failedexcept Litecoin and the funny Dogecoin: Like everyone is only on Bitcoin brieftasche synchronisieren vonat, everyone kept only on BTC: The ICO funding boom so far: The first token sale not called yet "ICO" at the time was organized by Mastercoin inraising half million.
This caused a "fork", splitting Ethereum into two rival networks. The Ethereum and DAO embarrassing fiascos cooled down the crypto investors, bitcoin brieftasche synchronisieren vonat only for a while. It's smart that most ICOs create new "assets" running on top of the existing Ethereum network, rather than each releasing a stand-alone software like the past alt-coins, that no one liked to run mine for long.
But what if the Ethereum network will be overloaded? It became too slow during some ICOs, the same scaling problem of Bitcoin. Even VCs, bitcoin brieftasche synchronisieren vonat to give big money, first give a small amount to untested founders, then wait to see if money is wasted on lavish life and luxuryor used to produce results. The incredible Bitcoin brieftasche synchronisieren vonat news story is that many untested teams, made of almost all under 30 kids with no prior business experienceraised millions in a first and one only big funding at once, by just writing a " white paper ", a document with an exciting sci-fi story that looks cool to bitcoin holders, that's all.
All you need is a crypto-jargon filled text, not detailed so can't be assessed. And promotion by influencerswho get a percentage to push the ICO. I expect a movie about ICOs soon. Some ICO project seems legit and properly prepared: My advice on picking the legal structure: But most ICOs look like last minute fake?
ICOs all are trying to "disrupt whatever", by bringing " whatever on blockchain ", so the excuses to setup an ICO are endless. Be sure to check the community and age of projects! Big bonuses for first investors and insiders with the option to sell hours or days later encourages quick pump-dump speculation only, not the real long-term projects.
If Bob sends an ICO buy order at Who setups founders or funds pre-sale discount investors an ICO that is in seed stage just an idea, no product or usersholds tokens at discount, that can be sold with a sure high gain shortly after when other investors will come buying at full price.
This is a "pump" and "be quick or it will be late" system, that tempts to immediately sell dump to profit: VC investing in startups hold the equity for years and force the founders to sign vesting contracts, which means, the founders can't sell dump before of a few years waiting period. There should be no token trading until the ICO got a working service and added users. In CF platforms like Kickstarter you pre-order a future yet-to-be-built product you wantno trading.
In Equity CF platforms you believe in a company: