No Cryptocurrency Will Make You Filthy Rich

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Portrait of a very happy young man in a rain of money

ForexMinute.com – In one of my conversations to a friend in London, who by the way holds around 2,000 LTC for now, I found out how much he expects out of his investments. “Litecoin will be over $50 in the future I am sure,” he told me over a phone call. When I try to know how and why he is making such analogy, the guy simply confronted me by exemplifying Bitcoin’s success lately and how Litecoin has wonderfully proven itself as its best alternative. “There will be a surge and we’ll be filthy rich,” he says while discussing his plans to invest more in Litecoin and other altcoins as well.

While digging inside the mind set of my friend, and thousands of other investors in cryptocurrency, I began to understand a common notion they all carry, which is to make quick bucks. They certainly play their cards on Bitcoin, whose value once travelled from around $50 to over $1000, that too within a short span. But the time was different a year ago, when Bitcoin used to be the one and only cryptocurrency.

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Those who lost their chances to make fast money with Bitcoin turned to Litecoin – another cryptocurrency that was based on Bitcoin open source code but was speculated to be more efficient and secure. Although it became an instant hit mostly because of and the much lesser price it was available for; as well as its promise to be yet another fortune maker like Bitcoin. And Litecoin proved to be so; at least for some time, when its values once crossed the $40 mark and attracted a whole pack of investors.

But in the end, it was the increasing number of cryptocurrencies that shattered the investors’ dreams of seeing magical surges in Litecoin prices. In 2012, there were only two-three cryptocurrencies in existence. By the start of 2014, the number crossed the 200 mark; and at present, there is a whole clan of over 300 cryptocurrencies – competing aggressively with each other. Each cryptocurrency promises to be better than the next. In a way, we now have over 300 different versions of Litecoin and Bitcoin, ripping each other price charts by huge margins.

They say that 1 BTC will be equivalent to $1 million someday, but the truth however is that there will be half a thousand cryptocurrencies by then to compete with Bitcoin. The market will be divided; the usual pumps and dumps will loot the investors; non-achievable announcements will be fooling them as well, and what we will have is a bunch of nothing.

Another factor that will keep punching the investors’ dreams will be the expected centralization of the cryptocurrencies. Its impact has already beginning to appear with Bitcoin, which recently was subjected to a 51% attack. Though, the matter was resolved but it sincerely raised many eyebrows. Experts however believe that no fool would ever try to take control of the coin’s network because he will eventually cause a panic that would kill the coin itself. In either case, it will be the investor who will suffer.

So will these cryptocurrencies make us filthy rich? I don’t think it will, until you are some cryptocurrency creator yourself.

To contact the reporter of the story: Yashu Gola at yashu@forexminute.com

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