With the new year comes many predictions for the coin market and markets in general. I believe this year, 2018 and possibly 2019 will be a rough year for most. I think many people will lose a ton of money, their savings and their lives. I believe the majority will be simply because of poor education, research and investigation, then the rest will be because of security.
In the last few months there is a sudden burst of talking about Crypto Currencies in the news. Investment funds are jumping aboard and creating entire funds on this currency. Even Banks are talking about Crypto Currencies now. When ever an industry or new technology is so recognized it brings all of the intricacies of that industry under the glass. Now you see the news putting a dollar amount on this industry, 1 billion this and trillion that and we are talking about a store of monetary value that the government has no idea how to collect taxes or their share from yet. You know we can not have that now can we.
I see the governments trying to figure a way to get their share. We have millions in people's hard earned money in these currencies floating around. Those same people are even increasing their value as the markets go up, yet the government doesn't get their share. What I believe will happen is the governments will either classify these Cryptos as actual currency, therefore bringing them under an umbrella of legal validation and regulation for National Security or they will classify them as outright counterfeit and still a threat to National Security. Now that I believe that will happen to all of these "NO USE CASE" coins. These are the Dodge Coins, Meme Coins and script kittie coins. These coins collect money from "investors" but do not do anything in return. They just sit there and feel good. They are not the XRP, XLM, ETH of the world and have no real value. The "creator" of these coins may in fact be classified as criminal in nature.
Once the Govs start to crackdown on these coins, there will be not only a crash but a huge panic. Most if not all of the newbies will panic after their loss and either lose all of their funds or get out of the market entirely and never come back after being bitten. Then the others will move their funds into what ever is left standing (If there is such a category). Take XRP for example. Ripple is doing a fine job creating a product which is useful for governments, banks and transfers. This will survive as it is already accepted, but the coin? Since the banks do not have to use the coin itself, will this survive the regulation? That one is hard to say. So now the question is, are the coins like XRP, XLM and ETH going to survive this crackdown? It makes sense to say that crypto currency is here to stay, but the question is which ones?
The next thing that I see after the Govs do their regulation and weed out all of the garbage, is those same clowns coming up with their own blockchians and coins. Of course Crypto Currency is useful. It is money printed out of thin air with no actual backed value. There is no Gold, there is no Oil backing the value of such an entity, so it is perfect for them to create and regulate. It is perfect for them to track us as individuals for all transaction in our entire lives. All they have to do is issue us an individual address and then our lives are stored in the blockchain forever. It is the perfect government vehicle to wipe out all privacy which ironically is the exact opposite of its original purpose. Of course the Governments will tell you all that it is ok to use their coins because it is secured and backed by them, not like the Mem coins that "Are not safe and not accepted." And that is how they get you out of these anonymous markets and into their markets for taxation and control.
Think about it, most of the exchanges can't handle trading when it is at normal volumes. Do you think they will remain open and allow trading when it is all crashing?
I see these things coming because of several signs that have occurred recently. I am in the EU and found this year that I could not move Euros from my exchanges to my bank because my bank, (3rd largest in the EU) does not accept any money generated from Bitcoin activity or associated with Bitcoin activity. Those were their specific words which indicates their lack of understanding since the exchanges are not about Bitcoin. None the less this is a government regulation and action to start to limit our activity. Lucky for me is that not all banks have adopted this policy yet. So my Euros coming from a commodity investment are worse than my Euros which I made selling drugs on the street corner? Makes no sense, but that is just the beginning.
I also believe we will see a sanctioned rise is security breaches. We will see a rise in the hacking of the individual and of the exchanges. This will likely be government backed also, but we will never prove it. If they can create a fear that your money is not safe in this Wild West currency, then the result will be the majority begging the government to crack down and provide regulation for "our safety." Social networks provide all of the data they need to complete this task. Lax security practices due to laziness and ignorance will be the rest.
When this happens, there will be "keyword" speech about the "bubble bursting" and the word "crash" thrown around. News will associate these terms with the entire market, not with single coins. The more I write into this article, the more I wonder if any coin at all will survive as they all are technically threats to National Security. Even XRP, Lumen or Etheruem are coins that provide a service, but are interfaces to the blockchain more than anything else and not technically a true store of value.
So now the question you have to ask yourself is this..... when this happens should you move all your funds into these use case coins and ride it out? I wonder if they will survive? I think you MUST get out of the BS mem coins, the clones and the feel good coins. The problem with them is the "When?" When will you need to be out of these coins to be safe and that answer is bad. I think Now is the time because when the crackdown happens it will be swift. Think about it, most of the exchanges can't handle trading when it is at normal volumes. Do you think they will remain open and allow trading when it is all crashing? Nope. I believe you will get stuck holding a crap coin and can do nothing about it.
I will tell you what I am doing and what I recommend. I will move all of my coins into XRP, XLM and ETH. I do not think Litecoin has a future along with any other Bitcoin brother unless they come up with a use case scenario that makes some government entity happy. Even then, only move money that you can afford to loose just in case none survive but for sure move out of the feel good coins. As much as I like BCH I think it is just a replacement for Bitcoin and will be thrown into the mix. However, BCH may survive as that replacement because the Asian markets themselves accept Bitcoin for payments and commerce. They actually accept a few coins for commerce. Get all of your coins OUT OF THE EXCHANGES and into a cold storage wallet or a cold storage service that is not associated with an exchange or regulated entity.
This year is going to be rough for most. Do your own evaluation and research and come up with a prediction. I could be totally wrong, but when in history does any government allow a trillion dollar monster survive without their hands in it? Why would they start now?crypto currencis # bitcoin # ripple # xrp # xlm # eth # government #