Over the last few years, blockchain has undoubtedly made massive improvements in technology application. Many of these blockchain ideas have first manifested themselves in the form of whitepapers, which outline the overarching principles of a specific new technology. Some tend to go into excruciating detail, while others are broad overviews. This is, of course, a good thing, since providing a comprehensive business plan and/or road map can generate the kind of interest wanted. From people who have discretionary income for Cryptocurrency Investment, to businesses eager to ride in tandem with a development that compliments their own business model. The problem, however, is that in this new age of digital asset creation, there is little precedent from which to draw past experience and practically zero accountability from a personal or regulatory perspective.
Cryptocurrency Investment is not for the faint of heart
Investing in an ‘idea’ alone can provide enormous benefits to the speculator. Just think about buying a house ‘off-the-plan’. The early investor is typically able to secure an investment position at a ground level, taking a bite with a higher risk margin which in theory should extrapolate to reaping a larger return on investment (ROI) at some point in the future. A little like leverage if you will. At the same time, even after doing his/her due diligence or referring to technical advisors for feasibility studies, a project can fail to get off the ground for a number of reasons, including no less than a complete lack of willingness to move forward with gusto once the funds have been provided to the project leader/team. Try getting a return on your investment from a 20yr old computer programmer who has just finished his computer science degree, drawn up a masterful blockchain architecture, gathered a few like-minded competent developers (or sock-puppets) and received 30 million dollars in seed funding. The temptation to simply slow-walk the process, if not abandon it completely must be magnificent. I’m reminded of how I feel paying for anything in arrears.
And so, it is easy to see the pitfalls of Cryptocurrency Investment in blockchain startups if you have little to no experience in the space. Investing, in and of itself carries a weight of luck, a component of chance and a healthy serving of trust. Cryptocurrency Investment is another thing entirely, quite simply a lottery even for those even with a modicum of experience. And it is with this in mind that I draw caution to everyone who looks to become involved in this brand new technological adventure, that for all intents and purposes appears to be changing our world for the better at a blistering speed.
Cryptocurrency Investment Research
Drawing on my personal experience in the ecosystem for the last 5 years, I have come to a realization that the ‘huff & puff’ which is perpetually sent out into the ecosphere through such social media platforms as Crypto Twitter, Crypto Reddit, Crypto Facebook and Bitcointalk Forum, is just modern day grass-roots marketing at it’s finest. If you truly wanted unbiased opinion based on solid fundamentals, this is the last place you would find it. That said, there is very little in the way of resources to choose from when it comes to researching a project. Crypto simply has not caught up to the well fleshed out stock market and forex research houses that have created standalone business models that cater to the wealthy investment strategists globally. Until such time as blockchain projects coordinate as an effective ecosystem and provide a ratings system that all developments can be measured by, we will remain an immature market at the mercy of our own intelligence, ‘gut’ feeling and unfortunately the bias that contends within the social media circles today. To be fair, there are a couple of projects that are looking to plug this gap. In example:
UTRUM – A decentralized platform providing reputation-based and quality-curated Crypto Reviews, Insights, and Market Predictions for cryptocurrency investors and newbies. (Beta release due Q3 2019)
Coin Check Up – A cryptocurrency analysis and research platform designed to offer you transparent information on each cryptocurrency and help your investment decisions.
Let us know in the comment section if there are other worthy mentions
The more we can improve in this area of research for unbiased analysis, I do believe we will be able to unhinge from the shackles of uneducated influence and have ourselves an authentic marketplace that promotes and produces serious contenders for investment capital. Until this issue is resolved, I am quite certain we will continue to see scams, intended or not, gnawing at the picnic blanket that we have all sat down to feast at.
Most certainly, I do not advocate for government regulation. The simple fact is that regulation at a government level is a choke point which undermines the very idea of decentralisation. Added to that, the vast expanse of insider trading, lobbyist back-handers and corporate welfare that every career politicians gear up for, I have very little expectation that blockchain technology will serve the people the way it is intended to serve us if led by some misguided notion that a government has a duty to empower its population. The best type of regulation for this decentralised age is a self-regulatory model, where the people in the ecosystem themselves govern and oversee the projects that put forward an intention to raise capital from the general populous. By building a reputation system in tandem with accepting reviews, reports and ratings of blockchain projects, we could well see an amplification of not only professional investment firms enjoying this liquid marketplace, but a mass migration of people who have been sitting on the sidelines awaiting an opportunity to increase their wealth by mindful Cryptocurrency Investment choices in this new technological age.
Cryptocurrency Investment Fundamentals
While we all rest on our laurels and pin our hopes on reaching a critical mass for mainstream adoption through bitcoin and crypto speculation along with market price movements, we are at the same time cutting out our own legs from under us by not being proactive in supporting the fundamentals of project construction, developers, community, advisors and innovation. If we are truly to mature with dignity in this ecology, it will not be by analysing the project itself, but by firstly analysing the aforementioned fundamentals that underpin the building of a business system regardless of industry.
In closing, I appeal to you all to look further than price speculation when choosing a Cryptocurrency Investment vehicle. Millions of dollars have been spent on technologies that provide nothing innovative. Attracting vast amounts of money and masses of people. These speculators are generally either uninformed, or part of the Pump-n-Dump fraternity that is certainly not focused on improvements in technology. Additionally, there is a measured difference between a Trader and an Investor. It is important that you understand what side of the fence you are going to be standing. Furthermore, please realize that prices are not a reflection of the value of a project. It is difficult to ascertain how one project might be better from another when you look at their marketcap. I implore you to always be diligent and scratch a little further beneath the surface before you rush headlong into a Cryptocurrency Investment. People not unlike myself have been around long enough to see how this ecosystem has fleshed out, and I am telling you right now, that there has been a lot of ill-intentioned coin offerings (ICO’s IEO’s) sold as a solid Cryptocurrency Investment. Out of the thousands of cryptocurrencies on offer, there really is only a handful of projects that have the ability to stand the test of time … it is up to you to find them.