According to Wikipedia, smoke and mirrors is a classic technique in magical illusions that makes an entity appear to hover in empty space. The phrase, smoke and mirrors, has entered common English use to refer to any proposal that, when examined closely, proves to be an illusion. Investors should ask themselves, does this describe cryptocurrency? … Continued
Investing in cryptocurrency has always been controversial. In that regard, we have previously posted several blogs that suggest that legal tender is what the government says it is. Recently, China has made it clear that it does not recognize cryptocurrency as legal tender and the banking system does not accept cryptocurrencies or provide relevant services. … Continued
On Feb 16, 2018 and Jul 12, 2019 we posted blogs titled “Coin of the Realm” and “Coin of the Realm – Update” in which we suggested that legal tender is what the government says it is and governments don’t like competition. Government action has always been a risk factor for investors in cryptocurrency. Recent … Continued
Wikipedia defines cryptocurrency as a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrencies use decentralized control as opposed to centralized digital currency and central banking systems. The decentralized control of each cryptocurrency … Continued
With bitcoin down 80% from the peak, and similar declines for other cryptocurrencies, what’s likely to happen next? We have previously commented on the cryptocurrency phenomenon, see Coin of the Realm, posted 16 Feb 2018 and Tulips and Bitcoins posted 16 Aug 2017. We have been somewhat less than enthusiastic regarding the investment merit of … Continued
Meriam-Webster defines “coin of the realm” as: 1. The legal money of a country, or 2. Something valued or used as if it were money in a particular sphere. Investors and cryptocurrency enthusiasts should also consider another possible definition. A country’s coin of the realm (legal tender) is what the government (King) says it is. … Continued
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