Betting on Crypto-currencies

With the significant returns on cryptocurrencies over the past one year or so and the recent split (SegWit) of Bitcon into two (Bitcoin and Bitcoin Cash), led to a lot of attention on investing in Cryptocurrencies.

Is it worth now investing in crypto-currencies?

What is the true intrinsic value of Bitcoin?

Let me articulate a perspective here for future investors.

The size of global economy in terms of purchasing power parity (PPP)is >$110 Trillion. The size of crypto currency market is ~$100 Billions. Hence there is a very high potential for blockchain based crypto currency in terms of future potential of proportionate intrinsic value. Looking back over centuries, goods exchange was norm of trading, then gold norm, followed by currency notes(physical money). Countries printed their currencies in proportion to their measured gold wealth.

Then cards, one of the first forms of soft currency was introduced. Soft currencies are pseudo currencies and tied to the real currency and assets. Soft currencies became convenience for transactions. Corporations/Banks made money by commissions, fees and interest rates. That means soft currency is one of the first vehicles exploited the purchasing power of consumer that cumulatively led to imbalance of asset to circulated currency imbalance.

If cards were successful, why not crypto currencies which is another form of soft currency. The only lag measure is how soon the crypto currency gets tied to real assets. That anyway is happening by virtue of altcoins promoting the material transactions with crypto currencies and ICOs monetizing assets.


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