First things first: it’s true, we may be in a cryptocurrency bubble.
Yet we at Crypto Mouse believe cryptos and the blockchain are the future of money: of finance, of raising capital, of investing, of contracts across vast industries from real estate to logistics to shipping. How much is that degree of impact worth? Quite a bit.
We are not attempting to time bubbles or crashes. Anyone who tells you they can is simply blowing smoke.
No, we at Crypto Mouse are committed to finding the best cryptocurrencies – ones we believe will appreciate significantly over time. Remember, we believe this is a longer term play of at least five years. Our aim is to buy and hold them, rebalancing
when the market provides opportunities, and to sell for profits as life may require.
The most glaring issue we have to tackle right now is the majority of cryptocurrencies are scams and completely worthless.
Cryptocurrencies are often described as the “the internet of money.” We at Crypto Mouse will be observing, digesting and reporting back on the problems that cryptocurrencies solve and how the collective we (that is us at CM and you, dear readers) can and will make money while cryptocurrencies are slowly solving these problems. Emphasis on “slowly”. Cryptos are not lottery tickets that either flame out and rocket to glory overnight. Anyone who tells you otherwise is likely scamming you.
Make no mistake, we at Crypto Mouse see this as at least a five year play. Probably closer to eight to ten years.
Now then, what sort of money are we talking about? Well, there’s $200 trillion of government money and gold bullion currently on this beautiful earth. Currently there’s only $200 billion of cryptocurrencies. That is a 1,000:1 difference.
And THAT’S the opportunity.
To underscore this, here are some high level bullets to consider at a 10,000 level foot view so you can begin to absorb the potential macro impact of cryptos:
1. Boundary-less trust: Individuals can establish trust regardless of location. Right now we rely on intermediaries to place transactions with often complete strangers (financial institutions are the most common, who vet counterparties for us to send/receive “value”, AKA fiat currency). In the crypto space, both parties to a transaction can see it being recorded on a public ledger (blockchain), so each can act as his or her own financial intermediary/bank. This leads us to:
2. Decentralization: No longer will individuals need to rely on middlemen (banks are the most obvious example) to effect transactions of value.
3. Security, Transparency, Speed: Speed is something the crypto space is still working to improve with the lightning network, it is still faster than waiting up to two weeks for a transaction with an Asia counterpart to fully clear under the current banking system. Say you do business with China, you essentially have to wait ten business days to receive compensation for value already provided. It is an inefficient system, especially once you include foreign transaction fees, and one that does not have to remain as the status quo. By utilizing a public ledger via the blockchain, there is no mystery of where a certain transaction stands. Value you provided to China two weeks ago will not be lost in the financial ether. This leads us to our final point:
4. Wealth Transfer: For decades upon decades, where a bank account was domiciled cemented the bank account holder’s tax status. Offshore accounts became the default for individuals and businesses looking to shield themselves from unsavory tax burdens. Cryptocurrencies are premission-less, no middle man is needed to set up an offshore account. (Aside: this figure is in the trillions according to Ari Paul, more on that here.) With seizure/forfeiture no longer being a concern, assets can be accessible instantaneously as long as one has an internet connection and the 12 word key to a digital wallet.
Continue reading on for a basic explanation of several coins…