Unless you’ve just woken from a coma, you know full well that the blockchain and cryptocurrencies are all the rage. At time of writing, bitcoin prices eclipsed the $17,000 mark in some exchanges, while altcoins have enjoyed an unprecedented run. Ethereum looks poised to take out the $1,000 within a few months, while $500 litecoin is not out of the question.
If any other traditional sector — whether stocks, bonds, real estate, or even commodities – performed even half as well as most cryptocurrencies, Wall Street and the mainstream media conglomerates would be singing its praises. This was the case with internet stocks prior to the 2000s-era tech bubble, and with real estate before the floor was ripped out in the 2008 crisis.
But any mention within mainstream circles about cryptocurrencies and altcoins is likely laced with derision. As many of you know, my articles are frequently featured in mainstream publications, such as Yahoo News, MSN Money, and Nasdaq.com. Among my financial analyst colleagues, the overwhelming majority are opposed to cryptocurrencies, particularly the ridiculous run-up in bitcoin prices.
Strangely, most of my bearish colleagues will hedge themselves slightly by offering a similarly ridiculous token that they don’t oppose the blockchain – that, they’ll remind you, is the real innovation. But altcoins and even major cryptocurrencies have tremendous downside risk.
I laugh when I hear these hedged statements. It reminds me often of racists who deny the charge on the basis of their personal associations. Look guys! I can’t be racist…I have a black friend!
As such, the blockchain has unwittingly become our “black friend,” that disingenuous card that politicians pull out when a component of their moral character is called into question. But just like in politics, the “I love the blockchain, but I hate cryptocurrencies” argument is a limp-wristed excuse. It’s time the haters mean what they say, and say what they mean.
I genuinely wish more bearish analysts would be upfront about their animus towards cryptocurrencies and altcoins. But they don’t because it would make the bull’s job much easier.
You see, the naysayers insist on their pessimism – even when bitcoin prices continue to prove them wrong – because their livelihood is slowly being phased out. It’s understandable. Imagine the desperation you would feel if you were making a substantial income as a typewriter technician. You wouldn’t speak highly of the word processor, even though it’s lightyears more advanced.
Essentially, this is what’s occurring in the hoopla surrounding the blockchain. We have typewriter sales reps pounding the pavement like never before. Their hard-earned typewriter certifications now have very defined limitations. Of course, you’d expect them to sell, and sell with angry desperation.
The mainstream critics aren’t protecting you from an impending collapse; they’re preventing you from enjoying the fruits of an unprecedented opportunity. We may never see an investment class quite like cryptocurrencies ever again. How can you not want to participate? Unless of course you have a vested interest not to…