Investors (and we use that term lightly) in cryptocurrencies have experienced big losses this year. In 2017, it seemed that all cryptos basically went straight up, and now a cold dose of reality has hit the sector.
There are many investors, of course, who remain convinced that cryptocurrencies are the only true future for all currencies, and every fiat currency will eventually disappear. Crypto traders have a ‘cult-like’ belief in a decentralized currency system.
We will admit we don’t pay too much attention to companies in the sector. There have been so many IPOs, and companies converting from the mining or oil and gas sectors into new cryptocurrency companies that we have lost track of the number.
Almost all have the same game plan: Raise money, buy computer ‘mining’ equipment, look for low-cost electric power, make giant profits on cryptocurrency mining. The last point of course is highly debatable.
Well, we hate to throw cold water on this party (well, actually it is kind of fun) but here are five reasons why you might want to reconsider your belief in the whole cryptocurrency sector. These reasons are of course in addition to Warren Buffett’s warning prophecies on the whole issue as well. Read more from business.financialpost.com…
thumbnail courtesy of financialpost.com