Who wants to be a millionaire?
The ICO craze is on full throttle and all around millionaires are being minted. Four years ago, bitcoin was too complex and sinister for anyone to touch it but suddenly Ethereum is the darling. People who know nothing about decentralization or distributed systems are rushing into the cryptospace to make a quick buck. Some are likening this to the stock market bubble of the 2000's, others are making reference to the real estate shenanigans of 2008. One remarkable consequence of this new development is that a non-trivial proportion of some of Bitcoin’s ardent supporters feel uneasy with the way things are going. To these people, it’s so obvious that Ethereum’s turing completeness and consequent susceptibility to a large range of unknown attacks make it a poor choice on which to build the future of crypto tokens. However no one is listening because there is money to be made; founders are pulling in non-dilutive capital through initial coin offerings that they could never have dreamed off just two years ago and investors are high on this ‘passive’ income.
Here’s the deal. It is inevitable that at least one of these ICO-raising companies is going to fail in a big way such that investors will complain and the regulators will step in. When this happens and a lead developer of one of these projects (like Vitalik) gets thrown in jail, it will be interesting to see what blockchains are left standing.
Bitcoin won’t go anywhere. Litecoin is here to stay. Maybe ethereum classic. Why does it matter, you ask? Because buying a cryptocurrency is a declaration of one’s idea of how the future will play out. This is neither a cautionary post or a blockchain rally. The undisputable line in the sand is that the decentralization movement is here to stay, there will be loser and there will be winners. There will be a highly impropable, unpredictable and consequential event that will determine the future trajectory of this space and therefore retail investors need to keep their eyes open at all times. If anything, partake in ICOs now because when the future arrives, you need to understand it enough to take massive action. Above all, don’t invest more than you can affor to lose and keep your expectations realistic. Welcome aboard!