Hot Dot
Cryptocurrencies are the new rage. The sales vernacular for this is they are "The Hot Dot”. Most of the time Hot Dots should be
ignored and their glow will fade.
How can we tell if cryptocurrencies are here to stay or are they another
Hot Dot? There are a few experts
on this subject, I am not one of them, but I have read some thoughtful and well-researched
pieces on the subject and I stayed at a Holiday Inn Express last night.
Cryptocurrency
It would be nice if there were just a few cryptocurrencies
to choose from but there aren’t.
There are 1,182 and rising.
We have all heard of Bitcoin and my instinct is if I’m going to stick my
toe in the crypto water Bitcoin is a good place to start. My reasons
start with liquidity and end with price transparency. The downside to liquidity and price
transparency is they promote volatility, but let’s be honest with ourselves; isn’t
that why we are buying Bitcoin NOT IBM.
Big Wigs
Two big wigs in the financial services industry have shared
their negative opinion on Bitcoin.
What are they supposed to say?
If Bitcoin and other blockchain supported currencies succeed it will
not be good news for the established financial services companies and fiat currencies . Yes some shady characters are using
Bitcoin to hide their business dealings.
Hopefully that will be addressed and regulated if Bitcoin establishes itself. I wonder if the opium dealers of the
dark ages proclaimed “enough with the animal pelts” pay me in coins.
3rd party
analysis
If you have made it this far here is
your reward. The most insightful and
in depth research I have read are James's blog and Patrick's podcasts. Both have street cred and both do their
homework before they write or speak.
I challenge you to take the time to read and listen to their
podcasts. While it may seem
tedious and too long for our immediate gratification world if you want to learn
about cryptocurrency his is time well spent. I have listened to Patrick’s three podcasts
numerous times and I’m still confused but definitely more knowledgeable. Both
researchers close with the same disclaimer that their work is NOT a
recommendation to buy. I share
their warning.
The Hot Dot will usually burn you. There are some that we need to research and blow on the
Dot. When it cools down we might
find a great opportunity. I’m
going to blow on this dot.
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