The sudden Chinese crackdown on the virtual coin fundraising of bitcoin and other cryptocurrencies that caused the plunge is either the end of the beginning for the crypto-party — or, more likely, the beginning of the end….
It makes no serious sense. In other words, cryptocurrencies lack precisely the supposed unlimited upside that speculators dream about. The only way we are ever looking at so-called “blue sky” valuations is if the governments of the world all lose their collective minds…
And as for those cryptocurrency fans and their libertarian fantasies: If you think bitcoin or Ether or whatever is somehow beyond government control because it is so decentralized across so many different computers, think again. Governments may not be able to shut down all the servers, but they don’t have to. They can in theory ban people and companies under their jurisdiction from buying, selling, trading, or holding these things. Governments can make your cryptocurrencies unconvertible into anything useful…
Crypto-mania may continue for now. Traders will be watching the charts to see how the trends develop. But the long-term investment story looks like another matter. The risks are rising.
Eulogy made by Brett Arends
