Stupidity trumps logic…
At least for a while (one hopes)
My girlfriend was listening to an audiobook by some muppet which is called “how to become a cryptomillionaire”.. (by ‘Neil Hoffman’ — I think that’s his name)..
Whilst I’m glad she’s taking the time to read / listen and learn about the space, I personally can’t hack listening to monkeys like that who have no idea what they’re talking about, seriously.
I listened to a chapter in the car today on the drive back from the gym, and apart from the usual regurgitated information about “decentralised”, “smart contracts”, “blockchain” and shit he said about Bitcoin, Ethereum, etc — he went on to say Ripple would be more valuable than Bitcoin (in market cap terms) because it’s being adopted by all these major banks & private financial bodies.
WTF????
Is this guy retarded?
For one, Ripple is not even a cryptocurrency.
Number two, the adoption rate by large institutions has no bearing on the value of the token — if anything, the private company that owns Ripple would increase in value — not the damn token.
Why?
Velocity.
Ripple was designed to be a transactional currency. TRANSACTIONAL.
It’s not supposed to be an asset that appreciates in value. It’s supposed to facilitate simple, easy, fast transactions between major financial institutions, across borders.
The higher the velocity of said money supply (ie; the more it exchanges hands) the more steady it’s value should be. Not up 10x, or down 10x.
So news about Ripple scoring more partnerships & supposedly being adopted by more banks should NOT increase the tokens value. It makes no sense.
The more their currency is in use, the less it should rise in value (or fall for that matter)!
The muppet who wrote that book should’ve replaced his line about adoption as the case for Ripple’s rise to: “Ripple will grow in value becuase morons who don’t understand shit will pile in & buy it, so best to hold it because stupidity trumps logic” — and that’s how you become a crypto millionaire.
This shit is insane.
Don’t get me wrong, I think Ripple has it’s use case, as do many of the REAL cryptocurrencies & crypo-assets like Bitcoin, Monero, Ethereum, Verge, Zcash, etc — and I hold all of them (yes, including a small portion of Ripple), but god damn it, people need to get their heads out of their asses & start understanding why something has value, and why it should (perhaps) increase in value & not just buy into the hype because “some article said this guy had a chat with that bank & they’re one day going to trial some use of this token, but we don’t know when”.
Use your brains people! Get educated.
I’ve been a backer & supporter of this space for years, and I’d hate to see the inevitable pop bring down good projects, but alas, it’s 20yrs since the last get rich quick bubble occurred in tech, so I guess it’s been forgotten & this generation must experience it’s own.
Also — for all the supporters of this space out there — I remain a firm believer & supporter myself. I’m not saying the “bubble is about to pop”. If anything, this bubble will be of much grander proportions than anything else we’ve ever seen, so if / when it does, it’s going to have run for a much longer period of time + accrued much more value than a mere $700bn (in market cap terms).
So…in times like this, in the midst of mania, in the midst of money, fortunes & millionaires being made overnight, don’t use logic to argue the fact that the bubble is going to pop. In times like this; Stupidity trumps Logic.
In closing…
Lets hope 2018 brings some sort of sanity back into the space, with the real, functional assets appreciating in value & the things that should remain stable / hedges doing what they should be doing.
Good luck people. It’s a jungle out there…
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Hope you enjoyed this post. Please show it some love, give it a clap (or a few) and pass it around to anyone you think should have a read.
Some of my stuff is a little rough around the edges, but it’s done that way to hopefully jolt people into think clearer / deeper into what they’re doing.
Hope you got some value & feedback is always welcome!
Aleks
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