Has it come to anyone’s attention out there that Bitcoin seems to be feeding the apathy of the much younger “gamer” generation? These guys (men and women) already believe in immediate gratification! They are for sure not going to work in some “low paid — Low Skilled” job. Why work at all when they can sit at home and become digital paper millionaires by Holding onto Bitcoin! “Hey son/daughter, are you going to get a job today or just sit on the couch smoking legal marijuana? No, Mom, I made $50,000 today on Bitcoin, I think I will take the rest of the year off!
Great if that works for you but how do you buy a car? pay groceries, rent, dentist, child care or even go and buy a beer with Bitcoin? Though you could probably buy Marijuana because the “game” is the same. Outside of that, NO EXIT STRATEGY. You think these coin exchanges are taking heaps of Bitcoin and giving out cash? NO! They may take some, but if you think for a second they are cashing you out on all your brilliant “investor profits” you have another thing coming.
Unless you Bitcoin couch junkies start thinking about an exit strategy your digital profits will be exactly that, digital with no real value. Don’t take my word for it. “PNC bank recently threatened one of their customers for purchasing bitcoin.” (https://news.bitcoin.com/bank-threatens-to-close-customers-account-for-buying-bitcoin/). So, with NO bank account, how are you going to use your money?
Ok, now you’ve checked that out, go here and read this, “A few years ago, investors talked about cryptocurrencies becoming a mainstream currency, so you would one day buy coffee with your ether. But high transaction fees, slow processing and wildly fluctuating prices make it a tricky replacement for cash. So what to do with $73 billion of digital money? There’s nothing to do with it, so hey, for a couple bucks now you can get a cat,” Mr. Flavelle said. “Nobody’s even pretending it’s going to be a transactional currency anymore. It’s a stored value.” (https://www.nytimes.com/2017/12/28/style/cryptokitties-want-a-blockchain-snuggle.html). Yep, stored value!
Oh, and what does stored value mean exactly? Well, stored value when discussing a bank card refers to the exact amount of Fiat currency the card holder has on deposit. As to stored value of Crypto, it means the amount of coin in terms of digital numbers but with no actual set value. One thing for sure we know, Fiat currency WILL lose value in terms of buying power. Crypto may lose or gain, its a gamble. And, if Crypto was my ONLY form of income I would surely have an Exit Strategy. Do you have an Exit Strategy?