OPEN DISCUSSION: The Rise of "Dumb Money" in the Crypto Space
I want this blog post to be more of a "forum" type post where we get the discussion going in the comments, with that said I will start.
As many of you know (and why many of you are on Steem) is due to the large influx of awareness and money moving into Crypto during 2017 alone.
- We have more than doubled since the start of 2017 - from 20 billion to 57 billion.
- A large portion of that was just in the last month - from 30 billion to 57 billion.
We are approaching a 60 billion dollar market cap very quickly and at this rate, we will see well over 300 billion by the end of the year.
This is both good and bad
The Good: We have seen seemingly organic growth in coins like Bitcoin, Ethereum, Monero, Factom and tons more. This is good, these coins solve real world problems and I pray that they will go mainstream for the betterment of the worlds global economy.
The Bad: We see (literally) billions of dollars flowing into coins like Ripple, Dogecoin, Litecoin and many more only to be pulled back within a few days as whales take profit. While this creates big winners, it leaves new arrival into the Cryptospace with a bad taste in their mouth due to the wild-wild-west nature of investing. We see these new arrivals looking at the huge availability of CHEAP coins, many only a .1c and feel they can make a quick buck. If you head over to the Polo troll box, you will see some of the most idiotic questions and the sad thing is, these people are some of the ones flowing big bucks into the crypto space. It's scary to think that while we are growing exponentially, it may be due to simply dumb money.
I think as long as the market cap is increasing all is good.
I tend to agree, this brings more awareness to the space. But don't you feel it can leave many feeling betrayed if they invest at the top of something like Ripple, for it to drop down 20% the next day?
Investing always leaves some sour after taste. The point here, much like anywhere else, is to diversify.
not long on ETH and Index Funds! haha
It's the dogecoin investment that cracks me up.
It's crazy. Check Doges history, it pumped like crazy over the last month.
I'll just keep the miner going so that I can tip people. I liked the original purpose of it!
and at the end of the day, I respect that! I want everyone to support things they know and understand! That's the opposite of dumb money!