Welcome back to Blockchain Gospel’s crypto sermon, on this fine February day. All are welcome here.
If you’re new, please greet your neighbors as you find a seat.
It’s been an interesting start to the year, and the overall cryptocurrency space hasn’t bounced back from its beginning-of-2018 lows just yet, because there is still much to learn. Before the space can prosper once more, the FUD (fear, uncertainty, and doubt) will have its day.
Before we begin another sermon, we must tell you, what we state within these (internet) walls, is for entertainment purposes only, and never financial advice of any kind. The cryptocurrency gospel we’ll share is from our own eyes, and we are not financial advisors. Do your own due diligence and research, before your next steps.
While Coinbase continues to add new users by the minute, direct competition is just around the corner. Sure, there are already many ways to acquire cryptocurrency, but most people just stepping into the space use Coinbase. The common reason? Simplicity. A drawback? Very high fees.
Robinhood, the popular no-commission stock trading app, is jumping into cryptocurrency. They won’t be charging transaction fees, so what will Coinbase do once Robinhood enters the market later this month?
We don’t believe there will be much fighting between the 2 platforms at first, but ultimately, they will compete for users—over 1 million people have already subscribed to Robinhood’s cryptocurrency launch—and the crypto-consumer will win.
There is still one question remaining with any platform, though. How many ways will you be able to make cryptocurrency purchases, when every credit card company has banned transactions from such platforms? This started with Capital One, and we expect all major credit card providers to follow suit this year.
Sign up for Robinhood’s crypto updates at https://crypto.robinhood.com/
“90 % of crypto projects are scams…”
Straight from Silicon Valley, and one of the best angel investors in the world (not a coincidence), Jason Calacanis has been very outspoken on the cryptocurrency space for years. It’s hard to argue with him on investment advice, as he’s made seed round investments into companies like Uber, Wealthfront, and Robinhood (yes, that Robinhood).
His reasoning for hating on the crypto-space is that he sees an impending doom for millions of people’s investments, as most cryptocurrencies will end at 0.
In his recent blog, he highlights risks, how ICOs are the “black eye of the crypto industry,” how Bitcoin could end up at 0, and how it’s just a matter of time before a crypto-space behemoth is built (think Google or Amazon).
Jason’s arguments make sense to us. Many cryptocurrency projects are startups, with first-time founders who are raising millions of dollars without more than a whitepaper. Will they put that money to good use, and bring a valuable product to market? Some will. Many will not.
Find Jason’s blog at http://calacanis.com/2018/01/28/why-do-you-hate-crypto-jason-i-dont-but/
A positive Tuesday hearing
For those in the US, everything revolving around cryptocurrency regulations and tax is very much a gray area.
We expect 2018 to be a year of crackdowns, new laws, and many, many breaking news stories of fraud around ICOs (like Paragon’s headlines: http://www.businessinsider.com/crypto-company-paragon-faces-lawsuit-from-investors-who-want-their-money-back-2018-1).
But, we will say, the hearing on cryptocurrencies which included CFTC Chair, Christopher Giancarlo, and SEC Chair, Jay Clayton, was overwhelmingly positive for cryptocurrency and blockchain.
You can watch the entire 2-hour hearing at https://www.banking.senate.gov/public/index.cfm/hearings?ID=D8EC44B1-F141-4778-A042-584E0F3B9D39, if you’re up to the challenge.
Should ICOs be regulated to the highest standards? For the longevity of the space, it would prove to be more beneficial than not. But then how do we continue to move toward a decentralized future?
We’ll end with that question, so as you make your way home, you can think about what the best possible future for blockchain and its many innovations will look like. Go forth. Learn, and learn, and learn, fellow Blockvangelist.