You may have heard of “Bitcoin”. It’s a digital currency that’s poised to make the dollar obsolete. Maybe.
Or maybe it won’t be Bitcoin. Maybe it’ll be Preiscoin. Or OneCoin. Or UTokenUSA. And let’s not leave out Paymony…
No, these are not made up names. They are all digital currency, currently residing in a perpetual state of “the next big thing”. Many of them are currently darlings of the Network Marketing world, where MLM junkies tell their friends that they need to convert their dollars to digital bits. This will happen until next year, when these same people are into Water Filters or Amway (again.)
Seriously, not to pick on Network Marketing people, but let’s slow down for a second and proceed with a little bit of caution and look at this logically.
We have to admit, that in the logical sense, the virtual currencies make a compelling argument. The internet has changed everything, from the way we shop to the way we work to the way we socialize. But the way we bank – with currency backed by a central Government or similar entity – dates back to the 15th century. And events like the Great Depression and the recent near-financial meltdown of 2008 show us just how fragile the system really is.
In fact, when one really thinks about it, it seems it’s almost inevitable that some form of new currency, one that’s decentralized and not dependent on any one entity (like a government or a bank), will take over.
But truthfully, the takeover will be gradual and very slow. Getting people to part with their dollars is going to prove very, very difficult. Don’t believe me? Look at how everything in our lives revolves around money. What you have, and what you spend, dominates your life. It’s going to be a slow, gradual process.
Yes, it will probably happen. But two things are clear: The first is, there will be only one winner. The second is, it’s going to be such a slow process that any investment in digital currency, be it Bitcoin or something else, is a long term investment. You aren’t getting rich next month on digital currency, and it’s certainly not going to provide you a “residual income for life” (how many times has your MLM friend uttered that phrase?)
So yes, Digital Currency has a future. But what that future looks like is far from clear, and when it will happen for investors to profit handsomely is probably still quite a ways off. And stay away from the MLM stuff.