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June 1, 2020

Bitcoin and Crypto Assets Must Have These Characteristics to Go Mainstream

The awareness level of Bitcoin and cryptos in the public realm is rising, especially in the midst of all the unprecedented amounts of global money printing these days.

What is debatable is whether or not this relatively new asset class will be accepted by institutions and the people, and if so, how soon.

In order to do so, Bitcoin and other crypto assets will need to fulfill certain requirements:

  • Easy to use
  • Reliable and secure
  • Scalable
  • Global and democratic
  • Not reliant on any fiat currency
  • Cannot be counterfeited or tampered with
  • A possible store of value/protection from inflation and deflation
  • Options for insurance and custodianship
  • Uncorrelated to other asset classes (ideal, but not a requirement)

Quite a lot of barriers to hurdle!

Let’s discuss each one to find out where we are in the spectrum.

Ease of Use

As one of the most important factors for worldwide acceptance, we are certainly not there yet. There has been significant strides made, and everyone in cryptoland is acutely aware of this necessity.

Honestly, crypto usage needs to be as seamless and inconspicuous as using the Internet or the present banking system. Until that happens, mass adoption won’t.

That being said, more and more merchants throughout the world are accepting certain cryptos as payment.

Also, despite the dreams of many in the crypto space, cryptos will have work WITH the present financial system for the foreseeable future, rather than a total replacement.

Make no mistake, banks definitely see the threat that cryptos and blockchain technology pose to their hegemony and antiquated systems, and most are actively adapting to remain relevant.

This will all play out over the next decade or two.

Reliability and Security

Bitcoin is ABSOLUTELY reliable and secure. It has NEVER been hacked. It is open-source, which means theoretically anyone can contribute to the protocol.

What isn’t as reliable or secure are the crypto exchanges and “hot” wallets. Many are really good projects and are constantly improving, but there are scams and poor-quality/poor-design ones out there. Anyone investing and transacting in cryptos has to be diligent and properly vet the platforms beforehand.

We will need enough exchanges, platforms, and products that have proven themselves to be safe, reliable, and trustworthy before crypto’s potential can be realized.

Scalability

We need to be able to transact with any crypto asset with the speed and efficiency we are accustomed to with credit cards. And it will be absolutely essential before the “Big Money” can come into the crypto space in any significant way.

The good news is that this issue is being addressed by many crypto developers through many projects. The expectation is that this will not be a problem for long.

Global And Democratic

By that I mean that the crypto ecosystem is equal and fair to all participants, no matter who you are or where you live. This is already the case with most cryptos, certainly with Bitcoin. It is decentralized, borderless. peer-to-peer with no intervening intermediary, and censorship-resistant.

In essence, it is the IDEAL form of “money” and value transmission.

No Reliance on Government Currencies

We are presently in a global financial crisis of epidemic proportions (no pun intended). The decisions being made by the central authorities are unprecedented in scope and have no basis in history as to the outcome.

The COVID-19 pandemic has furthered the call for cashless economies, as paper currencies are full of germs that can insidiously serve as vectors of transmission that would be practically impossible to control. Already several Asian and European countries have nearly eliminated the use of cash.

What we need is an alternative to the present financial world order, some means to take control out of the hands of reckless decision-makers and give it back to the citizens where it belongs.

Luckily, we have that already in place – it’s called Bitcoin!

Anyone who knows something about the origin of Bitcoin knows that it was created eleven years ago in the middle of the last financial crisis, specifically to address the myriad faults of the global financial system.

After proving its resilience and getting bigger and stronger over those years, it is ready to assume its place in the new financial world order that is coming.

Counterfeit- and Tamper-Proof

Wow, over a decade old and no one has ever been able to create fake bitcoin or double-spend it!

The same cannot be said for cash or even gold.

Of course, this ties back into its security and trustworthiness as previously discussed.

Store of Value/ Protection From Inflation and Deflation

There is a lot of back and forth between experts on both sides of the “Bitcoin as a store of value” argument.

Suffice it to say that if enough people and institutions accept it as such, it will be.

There is no intrinsic value in paper currency, and very little in gold. It’s simply the faith of the people that determines what is money and what has value.

The future will decide Bitcoin’s fate.

But if one thing could have turbocharged its adoption, it would be the unlimited “quantitative easing”/money-printing globally.

There could be no conceivable scenario more bullish for crypto adoption than this!

You see, Bitcoin is the only asset class that is consistently reducing its new supply, and will continue to do so with the Halvings every four years. It is built into its code and is therefore 100% predictable and known.

The same certainly cannot be said for fiat currencies, or even for gold.

History will show if indeed the “Fed Effect” turns out to be the “killer use case” for Bitcoin and crypto assets.

One way or another, the present global financial system is broken and probably not fixable with the political systems we have in place throughout the world. There WILL have to be an alternative.

Insurance and Custodianship

Another important requirement for mass acceptance and use of cryptos is the ability to insure and safely store one’s holdings.

Let’s face it – the present system of buying, moving, and storing cryptos is complex, time-consuming, and scary. One little mistake and your cryptos could be lost forever. The average John and Jane Doe will never go for that.

That’s why the option of offloading that effort and responsibility is crucial for mass acceptance by the general public.

It may be that it doesn’t happen until crypto mutual funds and ETFs are widely available, but insurance and custodianship will still be needed for institutional adoption.

Non-Correlation

This is the bonus” that Bitcoin brings to the table.

It has already been proven through extensive and reliable research that Bitcoin is the most uncorrelated asset class in existence (over longer time frames).

This is extremely important to anyone looking to build a durable financial portfolio to withstand any and all economic cycles and shocks to the system.

Once an asset allocation model becomes “standard practice,” almost all financial advisors use some version of it.

Hence, with many now recommending 1-5% of total investible assets being placed into cryptos, the total dollar amounts that may be invested in the space are staggering.

So that’s where we are today.

Now we each have a decision to make:

Get in now before the financial shenanigans hit the fan, or wait to see how it all plays out and hope for the best.

There’s no doubt what I choose. For me, it’s either take control or let the inmates running the asylum do it.

(NOTE: This article is also being posted in Medium: https://medium.com/@1758/bitcoin-and-crypto-assets-must-have-these-characteristics-to-go-mainstream-f06843bcc75c )

lf you would like to learn more about the tremendous potential of Bitcoin, Cryptoassets, and Blockchain Technology and keep abreast of the latest developments, sign up for our FREE Email Crypto Insights at www.cryptoinfoconsolidator.com.

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Top 10 Cryptos by Market Cap (Updated Daily)

Name Price24H (%)
Bitcoin (BTC)
$39,741.00
3.57%
Ethereum (ETH)
$2,696.16
7.96%
Tether (USDT)
$1.00
-0.47%
Binance Coin (BNB)
$334.50
3.29%
XRP (XRP)
$0.73
3.13%
Bitcoin Cash (BCH)
$547.21
1.57%
Litecoin (LTC)
$143.89
2.86%
EOS (EOS)
$4.14
2.49%
Bitcoin SV (BSV)
$140.81
0.86%
Tezos (XTZ)
$3.13
2.35%

Frequently Asked Questions

Where does Bitcoin and other cryptoassets get their value? Are they money?

Bitcoin was set up to be a decentralized, trustless, immutable source of value. It allows peer-to-peer transfer of value between anyone anywhere in the world. There is a finite amount of bitcoin that will ever be created, and as its usefulness increases, so will the value. As with all forms of “money”, it is based on the faith of those who use it. It has been invented as a better form of money than fiat currencies, since it can’t be controlled, manipulated, or printed out of thin air like government money can. The vast majority of “money” and transactions globally is digital;Bitcoin has been developed to be the ultimate digital currency and store of value.

Other cryptoassets (i.e.,”altcoins”) are often very different from Bitcoin, but most are set up as variations of blockchain technology and distributed ledger technology. Their value comes either from use as a utility (like fuel or electricity), security ( like stocks or real estate) or stability (tied to the value of a currency, precious metal, or commodity). There are now third-generation cryptoassets being developed with even more advanced capabilities.

Just as the Internet spawned huge companies and platforms, so to will cryptoassets utilizing the latest blockchain and associated technologies. There will almost certainly be new “ Googles” and ”Amazons” of the crypto asset market.

Can the U.S. or other country’s government shutdown or outlaw cryptocurrency ownership or trading?

Bitcoin is so decentralized throughout the world that it would be impossible for any government to shut it down. A government can certainly outlaw trading on crypto exchanges in its country, but crypto users would be able to trade on exchanges outside the country. Just like the Internet, people always find a way around restrictions. The other important thing to consider is that blockchain technology, the underlying platform of Bitcoin and other cryptocurrencies, is an enabling technology, just like the Internet. Any country that would outlaw use of cryptos would only be setting itself up for lagging the rest of the world, thus doing itself and its citizens irreparable harm.

How much time does it take to get up and running with Bitcoin and cryptoassets?

This subscription has been specifically developed with the intention of giving any individual the knowledge and guidance to understand cryptoassets and get started as quickly and safely as possible. Once you have receive the introductory information and portfolio details, you will be guided to the best places and methods for setting up accounts. To begin with, you will need to have at least three different exchange accounts, which will give you access to buying and trading the vast majority of our portfolio recommendations. Each account will usually take up to an hour to set up.

Why shouldn't I wait until a Bitcoin/cryptocurrency ETF or mutual fund is available, rather than the hassle of setting up several accounts for buying, trading, and storing cryptos?

First off, there is presently no available crypto ETF or mutual fund available for individual investors.

Secondly, as of this writing, there is no definite timetable as to when one will be available.

Thirdly, the initial crypto funds will invariably deal only with bitcoin and possibly a handful of the larger, more established cryptocurrencies. They will not give you access to the smaller, newer, more advanced cryptos, some of which will be the biggest winners.

However, the main reason for not waiting is that by the time one is approved and available, a significant profit potential may be gone. Just remember, the whole reason the crypto asset market is still small is because it is so strange and tedious for the individual to understand and maneuver, and the infrastructure and regulations are not yet fully set up for the “big money” (institutional investors, hedge funds, pension funds, private equity, etc.) to enter. We, as the “small guys”, for once have a distinct advantage – we can get in before the big boys can! There has probably never been that opportunity with such an important emerging technology before! It is up to you to take advantage, and this subscription service is designed to be the easiest, most focused, and most inexpensive means of getting in early.

How much should I invest in Bitcoin and/or altcoins, and which ones to buy?

Again, this subscription is specifically designed to address these issues at the outset. Even though I personally can’t give any individual advice or recommendations, you will get the benefit of all the experts’ recommendations. In addition, the various cryptoassets in the portfolio will be divided into several categories, from “blue chip” cryptos all the way to “speculative” small cap ones with the highest risk but highest reward potential. You will be able to design your own crypto portfolio from the most conservative to the most aggressive, depending on your investment goals and risk tolerance.

How do I know the best time to buy or sell a particular crypto asset?

One of the most valuable parts of this subscription is expert guidance on evaluating the crypto cycles, which has been very accurate and timely in ascertaining when they reach tops and bottoms. I have been amazed at how accurate these experts have been, and it has allowed me to avoid getting in or out at the wrong times. As a subscriber, you will have all this information presented to you in a timely manner for you to determine when you may want to buy, sell, or hold a given crypto asset. It has been invaluable to me, and allowed me to be patient when the crypto market gets extremely volatile.

How will I know if there is breaking news on Bitcoin or other cryptoassets I own?

You will be sent alerts on significant news or changes in the crypto market or on a specific portfolio holdings as they are made known. It is of course impossible to follow every piece of news on every crypto; what we will be looking for are the important items. You will be given website apps that allow you to track news on any individual crypto asset anytime you wish.

I understand that you get your crypto knowledge and advice from several different crypto research groups. Can you name them or tell me where you find them?

Since I have spent over two years and hundreds of hours researching the crypto space, I’ve come across many different research groups and subscriptions, some excellent and many not so good. I personally selected those with what I believe to have a unique insight based on their evaluation methods. Several were new additions to other investment groups to which I already subscribed. Since the crypto market and technology is so revolutionary and rapidly developing, I discovered that there was no one expert who had the ability to understand and evaluate the whole space. Therefore, one-by-one, I invested in these additional various subscriptions.

After spending so much time and effort doing this for myself, I realized how valuable this information would be to others like me looking to get some guidance in this confusing and complex asset class. Thus, this subscription service was born! To my knowledge (and i looked!) there is no other service of its kind in the marketplace.

For the above reasons, I consider this work proprietary, and cannot name the individual research groups to which I subscribe. I will never plagiarize or violate copyrights from their newsletters. I am a merely filtering and consolidating, always in my own words, the information and advice into one easy- to- use place.

Anyone can, of course, search for themselves and find a crypto subscription service. However, you will only get one insight into the market, and will almost assuredly pay more for that one insight than getting the benefit of 11 different insights with this subscription. I had to do it the long, hard way, and I wish I could have had a service like I am offering as a concise, actionable guide to crypto investing.

What are the tax consequences of buying and selling cryptos?

You must understand that “cryptocurrencies” are not one entity; there are several types. It is so confusing to the authorities that it has been classified variously as property, a security, or a commodity, each of which has a different tax treatment.In fact, some cryptos are one kind, others are a hybrid. Presently the IRS considers it “property”. This problem is an evolving issue, and this service will do its best to keep you informed as to the latest.

Can I hold cryptocurrencies in a retirement account?

Yes. There are several choices on the market today, each with its own pluses and minuses. Our subscription service will be able to list some of the best ones for your consideration.