In 2017 I had written a series of articles about cryptocurrencies and the blockchain. I am basically open-minded towards any technology. Today I still have some Cryptos in my portfolio. But not much. Would be enough for a few tank fillings. But the sad thing about the cryptomarket is that nothing has happened since 2017. Many Cryptonewswebsites write eagerly about new Coins and DApps and Smart Contracts, but nothing more than 2017. I would call 99.999% of the market or supply there as: poppycock.
Cryptos have established themselves in a subculture of the IT-scene and find the way it into the news with Bad News, but they don’t make it into the retail market nationwide. Significantly as a means of payment. I still consider the technology as an option to establish alternative payment methods. But there is no acceptance beyond a few websites. If that doesn’t change, the coins will disappear again and were just another tulip crisis for the owners.
One of the biggest problems here is that transactions cost something. My bank transfers are free. My card payments – except for foreign withdrawals or, for some cards, foreign currency transactions – are also free. No cryptocurrency can compete with that. Users will never be willing to pay for it. In the real world, we change accounts when the fees get on our nerves. With Cryptos even this change costs.
But it’s not just fees. Also speed is still a problem with most cryptos. With VISA, you find that they process 150 million transactions per day. That’s about 1,736 per second. They’re trying to get up to 24,000 per second. In the Cryptos I could only identify eight projects that might have that capability: EOS with 5,000, Ontology with 5,300, NANO with 7,000, ICON with 9,000, STEEM and NEO and QTUM with 10,000 and KOMODO with 20,000 transactions per second. There is no asset that the majority of people who have studied this topic superficially will know about. Bitcoin manages maybe 5 transactions per second. It’s ridiculous to keep courting this crypto. Yeah! But even these mentioned assets do not offer any relation to the real world of the employees* who might be happy about alternatives to escape the banking system.
Some cryptos can already be used to send money around the world. I could send Stellar Lumens to a friend in Africa for a fraction of the cost I have to pay to banks. However, the risk remains the cryptos fluctuation. The majority of users are just gambling with it. I send 100 € and will receive 10€. That would be the biggest flop. A crypto can only have a value for the real world if the price is stable. These coins exist. But basically they are only used for gambling and parking of other cryptos. Waste of resources. Likewise, exchanging a real currency into crypto and then back again is too expensive. If the transport of a pure Crypto is cheaper than a foreign bank transfer in real world currency, you might consider it. But since the Crypto cannot be used in the real world, you have to exchange it again. And here it usually becomes more expensive. So it’s a bad deal.
If there are apps for the individual Cryptos and a separate ecosystem, then it usually consists of four categories: Cryptosexchanges, wallets, games and casinos. There are lots of exchanges networks and wallets. There is nothing new. The rest is poppycock. A waste of time. A waste of money.
Cryptopia. Binance, Bithumb, Coinbene and Gatehub were the biggest hacks in 2019 against exchange networks. Losing millions. When I wrote 2017, I also became a user of Gatehub. Since then, my account can no longer be used by me either. I can’t login. Someone else sure. And then acts on my behalf. Support can’t help. I was lucky that the loss was only in the double digits. These exchange sites are less secure than websites and online bank exchanges. Just an unregulated market.
If you play this game, you should go for decentralised – perhaps German or European – providers. Never use web-based exchange systems. My experiments are very very very very very very low since 2017. There are simply no possible applications. Cryptos that didn’t make it beyond gambling will die in the long run. That would be welcome, because then it could focus on more applications in the real world.
An alternative would be the creation of a stable crypto-currency, with which the basic needs of the people can be paid. Worldwide.