Take a look at some worrying stories from Crypto, says MR Money Maker Justin Urquart Stewart


Take a look at some worrying stories from Crypto, says MR Money Maker Justin Urquart Stewart


Fan or scam?

‘With the piercing of my thumb, something evil comes this way.’ This alarming quote comes from one of Shakespeare’s witches in the Scottish play, as she and her fellow sirens interpret Macbeth and the fate for his own future.

Prophecies are not always difficult and unreliable, but for me the birth of cryptocurrency favors has opened up a very risky investment structure, which has attracted many innocent and deceitful investors.

There are, of course, those who are fortunate enough to benefit from seeing the value of these computer-generated tokens. They have become fashionable and have been the subject of regular questions from investors. As usual, others are attracted after a huge jump in value, only to find that the price has fallen again.

Money for anything: There are those who are lucky enough to benefit from these computer-generated tokens.

We have a sovereign nation, El Salvador, which has announced that Bitcoin will become its national currency instead of the US dollar. This is insane, because the value of your local assets depends on the unethical and unstructured token trade.

Limited supply

These tokens must be ‘mined’ by the use of computer algorithms. Their supply will be extremely limited and the energy required is astonishing.

According to Digiconomist, as of July 15, a Bitcoin block requires 1,721.96 kilowatt-hours, or about $ 26,000 (£ 19,318).

To sum it all up, Bitcoin needs enough energy to be used by Sweden every year.

Perspective for Cryptos

For real value, we need to look at the underlying structure of these tokens.

They run on structure – blockchain – better described as a spider web. If you touch any part of the web, the rest of the web or network knows about it. In effect it locks the recording and control of the system. So we are now looking at whether central banks, including the Bank of England, should run their own cryptocurrency.

This allows the bank to have full control and oversight of all business ownership and transfer of their own cryptocurrency. This then prevents money laundering and controls any potential illegal activity involving their own assets in a spider’s trap.

What should we do?

In my view, cryptocurrencies should not be part of a portfolio because they are not properly regulated and their value is very unlimited.

However if you want to have a bet this is a one day economic version of the races – it comes without a picnic and champagne.

For the right investment, we must wait until this market for computer-generated tokens matures into a more reliable asset.

Justin Urquhart Stewart co-founded the fund manager 7IM and is president of the regionally invested platform.

Advertising

.

Related Articles

Waukesha Parade tragedy: A child released from hospital on Saturday, 8 left

One of the nine remaining children in the hospital was released Saturday after the tragedy of last Sunday's Christmas parade in Wisconsin, according...

The Knicks’ big-picture goals need Julius Randall to return to his best

For fans of the same mocking Nicks that got so cold-muted last summer by Trey Young, this is a holiday season that includes...

Alec Burks shone in the Knicks victory over the Emmanuel Quickly Hawks

ATLANTA - Tom Thibodeau said with a straight face 90 minutes before the Knicks game tip-off against the Hawks on Saturday night, with...

Latest Posts

Waukesha Parade tragedy: A child released from hospital on Saturday, 8 left

One of the nine remaining children in the hospital was released Saturday after the tragedy of last Sunday's Christmas parade in Wisconsin, according...

The Knicks’ big-picture goals need Julius Randall to return to his best

For fans of the same mocking Nicks that got so cold-muted last summer by Trey Young, this is a holiday season that includes...

Alec Burks shone in the Knicks victory over the Emmanuel Quickly Hawks

ATLANTA - Tom Thibodeau said with a straight face 90 minutes before the Knicks game tip-off against the Hawks on Saturday night, with...

The Giants match the rival Eagles with a little spark

It can be very juicy. Instead, it dried up like a 4-day-old Thanksgiving turkey. It is likely that the Giants-Eagles will drip...

The Nets fall to the league-best Suns in front of a record audience

The Nets looked worse than they did on Saturday night ... the last time they played a top team. There may be correlation....