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Druid
Totally with you on bullion. Currently the correlation between crypto and the NASDAQ 100 is quite striking, so crypto is certainly less than attractive right now. But the NASDAQ 100 is not going to zero and neither, I would argue, are the serious cryptos. When there was a dot com bust the internet didn’t go away and we saw the likes of Amazon survive and eventually thrive. We need to think ahead, identify the crypto Amazons and be ready to buy the dips. Never thought, as a goldbug, I would ever find myself trotting out that line, but this is where I have got to.
Kudos to Ab76 for finding this:
https://guardian.co.tt/business/doing-nothing-and-hoping-for-the-best-6.2.1456498.f0bf175cd2
When you look at the new breed of mobile crypto projects you can see them actively trying to make the network effect work for them. Pi Network, for example. The tokens are free at this stage because it is all about trying to get as many users on board as possible (I believe they are now at 30M plus). It has been structured not unlike a pyramid scheme for this very reason (which would be worrying if money was involved). Someone recruited me, which increases their “mining” rate, and I have recruited six others, which increases my mining rate. If they each recruit six others etc., Pi will eventually rule the world! Your Pi invitation code is my username. Better than dodgy ICOs, arguably.
Fair
That was pretty much what I thought about crypto until this year. In a very simplistic way, I have for a long time thought about fiat currencies as being like the shares of most AIM companies - backed by very dodgy balance sheets with placings always waiting around the corner to reduce their value. Hardly as good as gold but better than crypto with its nonexistent backing, you would think. But I have come round to the view that the network effect can create something out of nothing and that this is what has happened here. Crypto is still a minefield, and one person’s network effect is another person’s Ponzi scheme, but I now believe that crypto is here to stay, even though I also see big bumps in the road ahead.
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I try very hard not to think about crypto what ifs. I first became aware of Bitcoin around the time I was wasting money on the awful LGO Energy, which ultimately became part of the awful CEG, although I cut my significant losses long before then. Enough said!
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Stranger things have happened!
We can all see that the internet is here to stay and that the internet businesses which weathered all the storms have delivered titanic returns. I now strongly suspect that crypto is here to stay and that when the dust has settled and the vast majority of coins and tokens have fallen by the wayside, some real titans will be left standing. I am not sure what the USP of Dogecoin is, other than being a meme coin. But it is the quintessential meme coin - maybe that will be enough.
I am not sure how I square all this away with my belief in sound money, but there you go. An interesting question is what percentage of our overall portfolios our crypto portfolios should represent. If 5-10% in gold is reasonable, maybe 5-10% in crypto is about right. But I want my crypto as well as my gold, not instead of it.
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My list is entirely theoretical at this stage. When it comes down to it, those seven seem like credible mainstream plays (as far as anything crypto is mainstream). Those are the ones that, right now, I would likely buy in a dip (and if I get lucky with my free tokens, they will probably end up being converted into one of those mainstream coins).
Note out - available free on Research Tree.
Does LSE have any crypto boards?
Porky9
It is just a link!
The hope is that the total return for shareholders will ultimately be greater if they don’t pay a dividend at this stage but instead keep their powder dry to (a) spend on items that should enhance shareholder value and (b) keep a decent cash cushion to strengthen their hand as they negotiate the Galeota farm-down.