We’ll Know Crypto Is For Real When Its Coins Start Collapsing

In the early 20th century it was automobiles. There was a manic quality to investing in this transformative new technology. For good reason. In a figurative sense, cars would wonderfully reduce the size of the world and at the same time massively increase the standard of living far beyond motorized traffic.

And, as always, cars began as a luxury for rich men. They were rarer than millionaires, and millionaires were incredibly rare.

All of this speaks for the genius of capitalism. Wealth is mostly a result of individuals doing together what used to be scarce and coveted. Thanks to Henry Ford, the car that awe so many people soon became an everyday consumer good.

Crucially, there were thousands of would-be Henry Fords. When we think of American cars today, we often think of Chrysler, Ford, and GM, and much less the thousands of automakers that sprang up at about the same time but didn't survive.

Yes, there was a car bust in the 20th century, and it was inevitable. Politicians and experts today have turned business failure into a shameful act which they want to investigate along with the defamation of those who funded the failures (yes, the great minds on Wall Street whose brilliant work is lost in the writing classes) would give truth there is no progress without the bugs. George Gilder calls busts "growth cramps" for good reason. That's them.

When interesting business ideas emerge, business concepts that were previously difficult to finance suddenly encounter greater openness on the part of investors. To take just one example, readers can rest assured that Netscape (the internet concept that sparked the internet IPO boom of the 1990s) was far more skeptical of investors than the internet companies that followed the pioneer.

Netscape's initial public offering in August 1995 was THE story of its time. After the stock price doubled on day one, investors frantically searched for what would come next. The internet was hot.

As most readers know, what came after Netscape was brilliant once in a very blue moon, occasionally good, but for the most part abominable. Which was completely understandable. When a transformative technology hits the market, and the internet has certainly been transformative, it's no surprise that massive investments are made in the search for what's next.

Thank God. While Netscape is a fossil, a long-forgotten memorial to the beginning of what was great, what came after has massively improved the standard of living.

Really, who of us would love to go back to life before Amazon AMZN, Apple AAPL, and Google? Let's call them the Big Three of modern times, without forgetting the thousands and thousands of companies that started around the same time but never made it.

The dirty little secret, well known in Silicon Valley but largely unknown outside of it, is that the vast majority of tech companies are dying. Over 90 percent safe. Experts who should know better claim that Silicon Valley is full of socialists, but the reality is that the place where remarkable technologies emerge is the most relentless and ruthless capitalist trading zone in the world.

And that's how so many internet companies died in the early 2000s. Unsuspecting experts said the internet was dead, dangerously confused politicians called for failure investigation and prison for the "greedy" (you guessed it, "Wall Street") financiers who allegedly put lipstick on the proverbial commercial pig, but the lucky ones The reality was that the US economy had just experienced another tech-driving growth spasm that would forever change the way we live and work for the exponentially better.

What brings us to the cryptocurrency wave. Jeff Bezos made something like this clear a long time ago: "Your margin is my opportunity". Well, since the dollar was separated from gold in 1971, forex trading has become a necessary means of mitigating at least some of the monetary equivalent of a foot, a degree, and a minute that change in length, heat intensity, and time throughout the day . every single day.

Since currencies no longer had a strict meaning than agreed standards of value, trading in them became one thing. According to Gilder, forex trading is a constant of $ 5 trillion a day these days. And while trading isn't as lucrative as investment banking, it has proven to be a source of Wall Street and hedge fund profits. Except that margins are again an opportunity for innovators.

As the $ 5 trillion daily currency trading shows, the global market was never satisfied with money that had no anchor. Enter entrepreneur. They work feverishly to meet unmet needs. One of the needs of the market today is trustworthy money.

Enter crypto entrepreneur. Their numbers seem to be growing day by day, along with investor interest in them. Call Bitcoin the Netscape of the crypto boom. Just as countless investors have given up on Netscape with regret, we have obviously seen the same with Bitcoin. The latter's surge from basically nothing to $ 35,000 per coin proved to be a powerful magnet for investors willing to create forms of money better than BTC.

That is why there are currently many more crypto concepts than global currencies. Once again, mindless experts, economists and politicians do not understand what is happening. In this case, they don't because they never understood what money is. Unless you understand that it is a measure and nothing else, you cannot really analyze "money". So they focus on the prices of the coins, which for them misses the point. Good money is never a speculation.

In this case, the bet is that Amazon, JP Morgan, Wal-Mart, Target TGT and other similar currencies will eventually surrender. Businesses like them cannot devalue the way the U.S. Treasury Department routinely devalued the dollar, and the result will be that more and more payments and paychecks will demand in trustworthy, market-based money that will get its worth over time retains.

But that's just a guess. And probably the wrong one. That's because investors in literally thousands of private forms of money are currently battling it out. Most of these currencies will crash. Another growth spasm that experts and politicians will completely misunderstand, but one that will change the way we live, work and do business transactions and end the cruel currency devaluations that are as old as money.

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