Why Privatized Crypo Will Win
Believing in decentralized/open source/mined cryptocurrency reminds me of a teenager thinking their favorite underground punk band is “better” than Taylor Swift. (i used to be that teenager once)
Working in tech for the past 10 years and using a computer for the past 20, I’ve been following bitcoin since the launch.. I have an email advising my rich uncle to buy a ton of it from 2012.. here is that email :
I made some money playing around with ETH and BTC, but I have continually told people that all decentralized crypto is dumb af and a waste of natural resources (its terrible for the environment)..
After SilkRoad and Alphabay shutdown there really was no utility that would create volume for the currency, it became an investment for big money (read money storage facility) and a mania for the rest of the world (common people using Coinbase).
For the same reason BTC/LTC/ETH has skyrocketed in the past year will be why it fails. That reason is, THE MEDIA HYPE AND VALIDATION. Common people opening Coinbase accounts could care less about Satoshi Nakamoto’s fiduciary idealism, they just want to make money.. and enough people around them and in the media are telling them Bitcoin is an easy way to. Decentralized crypto will fail in the same fashion, the ease of manipulating public opinion via mass optimism or pessimism.. public hysteria will be disseminated by large centralized media outlets and people will freak out, just like they freaked out to buy they will freak out to sell. In other words, Bitcoin has no PR department. Ripple does.
Ripple’s XRP will be the only cryptocurrency that succeeds for the following reasons:
- SEC is going to come down hard on decentralized crypto because its essentially a scam as its a security backed by no product or service.
- Ripple has a PR department
- Ripple has a clear “purpose” (regardless of how useful or successful or adopted it actually is, it still has one)
- Its centrally controlled and pre-mined, helping ensure a balance between supply and demand
- Ripple “looks cheap” on paper (like $2 USD at time of writing this).. consider how Litecoin boomed for no reason other than it was on Coinbase and it was “the cheapest”
- Ripple has a good looking CEO
- This guy works there :
You can argue that Bitcoin is “better” than Ripple but its just like arguing that some crust punk band from 1993 is “better” than Taylor Swift.. doesn’t matter how much more “genuine” or “original” the music is.. Taylor Swift will still win in all measurable metrics.. of which the world of money operates in.