Crypto pros
Firstly, the crypto pros. There are lots of opportunities and great things ahead for crypto. Not least the following:
* Exciting technological advancements and roadmaps for crypto initiatives. Maybe ironically, given we are discussing the future of crypto mining, but the Ethereum merge is a great example of a crypto initiative which is at
least trying to address governmental and environmental concerns over the power required to mine crypto. Putting aside any arguments over centralization vs decentralization, Ethereum is sticking to its roadmap and has
enormous growth and adoption potential. Its likely ETH will take off in a big way when the economy recovers and the current bear market ends.
* Inflation, failing fiat currencies, and devaluation of the pound/euro. Not all crypto projects are intended to be a store of value/currency and many provide innovative use cases and solutions to solve real-world problems.
That said, most have an accepted value and can be traded on exchanges, like a share can be purchased for a company on the stock exchange. However, with traditional fiat currencies like the pound and euro
plummeting and living costs going up, more people (including governments) are questioning whether cryptocurrency provides the answer, especially given some of the obvious benefits e.g. limited supply, deflationary,
smart contracts, and so on
Its for this very reason, that El Salvador has taken the bold move to make Bitcoin legal tender with president Nayib Bukele recently mocking the Bank of England.
* New and exciting crypto projects enter the market every day. Believe it or not, its still very early days for crypto. The industry is ripe with innovation and visionaries. Other projects like Ethereum will emerge and learn
from their predecessors to become bigger and better. Some may be more suited to Proof of Stake but others like Bitcoin will always require the benefits provided by Proof of Work mining and this is one of the biggest
reasons why crypto mining still has a bright future!
Crypto cons
Now, the crypto cons. Sadly, for each of the pros above, there is an opposing view:
* Many legitimate crypto projects fail. Its true that while we have exceptional crypto projects like Ethereum, Bitcoin, Cardano, and Solana (the list goes on), there will be failed projects like Terra LUNA. The collapse of Terra
LUNA is just one recent example that made (and is still making) headline news. Many investors lost a lot of money when the project failed. It came out of nowhere and caught even the most seasoned crypto investors
and enthusiasts off guard. The lesson learned is that nothing is certain in the world of crypto and a degree of resilience is always required. Always remember, with any kind of investing its never a good idea to put all of
your eggs in one basket and never invest more than you can afford to lose.
* CBDC (Central Bank Digital Currencies) are a safer crypto version. In short, CBDCs are intended to provide a digital currency replacement for traditional fiat currency or cash. These will be digital currencies that
governments control. In all likelihood, these CBDCs will be subject to digital money printing and inflation much the same as the current financial system is, but with much greater controls in place as to monitor
when/where/how you can spend your money.
* The crypto market is not impervious to scams and Ponzi schemes. Sadly, crypto scams are at the forefront on many peoples minds when thinking about crypto. Its often very difficult to distinguish a scam from a
genuine and innovative project. Suffice it to say that crypto scams are a legitimate concern and care always needs to be taken when investing in crypto.
* The current bear market could go on for a long time. With high levels of inflation and living costs (especially energy) going up, many investments in stocks/crypto (and subsequently pensions) are going down. Weve not
long come out of the COVID-19 pandemic, and now the Ukraine war together with possible further conflict with Russia, makes it very difficult to foresee an end to the current economic turbulence. Sometimes these bear
markets can go on for years, approaching decades, but they do end.
Its probably clear from the above pros and cons of crypto, that we are still strong advocates of crypto and believe it has a rocky but exciting future ahead.