CryptoCurrency: Overrated or Intriguing?
By Phin Upham
One of the most interesting concepts in the world of fintech has been crypto currency. The enigmatic currency began popping up on blogs, associated with drug deals and hit men, and it promised a method to anonymously send money. It was invented to make it harder for governments and financial bodies to track financial transactions around the world, and hasn’t had too much positive publicity up until Goldman Sachs decided to invest in it.
Mt. Gox, where 850,000 bitcoins belonging to traders simply vanished, showed everyone that crypto currency has a dark side. As the company began closing down, some thought that might end crypto currency for good. After all, if the bitcoin stock exchange can’t work, how can the currency?
Overrated
Bitcoin is basically used to buy fake passports and drugs on the Internet. At least that’s what the media wants to say about it, but the currency has not proven to be secure and stable. Trading prices fluctuate rapidly, which sends values all over the chart, making it hard to look at historical trends or make any kind of educated guess as to where this all going.
Underrated
Which is why bitcoin is so undeniably fun to consider. Almost like the invisible dollar that could, bitcoin promises to make it easier to move money internationally. Yes, there is the dark side of anonymity, but the currency was always intended to have artificial limitations in order to simulate value. It’s like a game where the player is you and the health bar is your bank account.
The biggest challenge right now is the “Wild West” atmosphere surrounding crypto currency, but regulation may come in the near future.
About the Author: Phin Upham is an investor at a family office/ hedgefund, where he focuses on special situation illiquid investing. Before this position, Phin Upham was working at Morgan Stanley in the Media and Telecom group. You may contact Phin on his Phin Upham website or Facebook page.