We’ll know the crypto is real when its coins start to collapse
At the beginning of the 20e century, it was automobiles. There was a manic quality to investing in this transformative new technology. With reason. Figuratively speaking, cars would magnify the world beautifully, while massively raising the standard of living far beyond motorized transportation.
And as it always is, cars started out as a rich man’s luxury. They were rarer than millionaires, and millionaires were incredibly rare.
It all speaks of the genius of capitalism. Wealth is more often than not a consequence of individuals pooling what was once rare and highly coveted. Thanks to Henry Ford, the automobile that has won the admiration of so many people has quickly become a daily commodity.
What is crucial about this is that there were thousands of potential Henry Ford. When we think of American cars today, we tend to think of Chrysler, Ford, and GM, and much less of the thousands of automakers that were formed around the same time, but did not survive.
Yes, there was an automobile bust in the 20e century, and that was essential. Politicians and pundits have made the failure of a business an infamous act, an act they want to investigate along with the vilification of those who funded the failures (yes, the great minds of Wall Street whose work brilliant is lost in typing lessons), but in truth there would be no progress without mistakes. George Gilder calls busts âgrowth spasmsâ with good reason. This is what they are.
When intriguing business ideas present themselves, business concepts that previously struggled to find funding meet with greater openness from investors. To give just one example, readers can rest assured that Netscape (the internet concept that sparked the internet IPO boom in the 1990s) has faced much more skeptical investors than internet companies that have. followed the pioneer.
Netscape’s IPO in August 1995 was the story of its time. With its share price doubling on day one, investors were frantic in their search for the sequel. Internet was hot.
As most readers know, what happened after Netscape was brilliant once in a very blue moon, good on occasion, but abhorrent for the most part. Which was perfectly understandable. When transformative technology arrives, and the internet has surely been transformative, it’s no surprise that large investments are made in finding the next step.
Thank goodness for that. Indeed, while Netscape is a fossil, a long-forgotten monument in the early days of what was great, what followed dramatically improved the standard of living.
Really, who among us would gladly come back to life before Amazon?
The dirty little secret that’s well known in Silicon Valley but largely unknown outside of it is that the vast majority of tech companies are dying. Over 90 percent for sure. Experts who should know better claim that Silicon Valley is full of socialists, but the reality is that the place from which remarkable technology emerges is the most ruthless and ruthless trading area in the world.
And so it was in the early 2000s that so many internet companies died. Ignorant pundits say the internet is dead, dangerously confused politicians call for chess investigations and jail for “greedy” financiers (you guessed it, “Wall Street”) who allegedly painted red lip service on the proverbial commercial pork, but the happy reality was that the US economy had just experienced another spasm of technological growth that would forever change the way we live and work for the better exponentially.
Which brings us to the cryptocurrency wave. Jeff Bezos said a long time ago something like “your margin is my opportunity”. Well, since the dollar’s link with gold was severed in 1971, currency trading has become a necessary means to at least somewhat dampen the monetary equivalent of a foot, a degree, and a minute. that change in length, heat intensity and time throughout the day, every day.
With currencies no longer having a strict meaning as agreed measures of value, their trade became a thing. According to Gilder, currency trading these days is a constant $ 5,000 billion a day. And while trading is not as lucrative as investment banking, it has proven to be a source of profit for Wall Street and the hedge funds. Except that margins exist again as an opportunity for innovators.
As evidenced by the $ 5,000 billion in daily currency trading, the global market was never satisfied with money that lacked anchoring. Enter the entrepreneurs. They work feverishly to meet unmet needs. One of the current market needs is trustworthy money.
Enter crypto entrepreneurs. Their numbers are apparently increasing day by day, with investor interest in them. Call Bitcoin the Netscape of the Crypto Boom. Just as countless investors have abandoned Netscape to regret it, we’ve obviously seen the same with Bitcoin. Raising the latter from virtually nothing to $ 35,000 / coin has proven to be a powerful magnet for investors keen to seed the creation of currency forms that are better than BTC.
This is why there are many more concepts in crypto today than there are global currencies. Again, stupid pundits, economists, and politicians don’t understand what’s going on. In this case, they don’t because they never understood what money is in the first place. If you don’t understand that it’s a measure, and nothing else, you can’t really analyze “the money.” So they focus on parts prices, which makes them miss the point. Good money is never a speculation.
In which case the bet here is that ultimately Amazon, JP Morgan, Wal-Mart, Target
But this is only a guess. And probably the wrong one. This is the case because investors in literally thousands of private forms of money are fighting right now. Most of these currencies will collapse. Yet another spasm of growth that experts and politicians will not understand at all, but which will transform the way we live, work and do transactions, and which will end cruel currency devaluations that are as old as money. .