Crypto Diary 0006: I Want to Believe
Writer Jess Lander's final diary entry in a series about the blockchain and cryptocurrency.
When I started this cryptocurrency journey six months ago, I was in it for an easy way to get rich.
I was also guarded and skeptical, assuming that crypto was more likely than not a scam and too good to be true.
While I’m officially a converted crypto believer, I’m also not any richer than when I started. I’m actually a few hundred dollars poorer. So where does that leave me?
Despite the numbers in my Coinbase account, I’ve become increasingly convinced over the past months that cryptocurrency is not only here to stay, but also very likely the future of currency. There’s simply far too much investment from the one percent and the world’s biggest companies — from Tesla to Goldman Sachs — for crypto to fizzle out.
That said, I think we have a long way to go before we’re all doing our grocery shopping on the blockchain. Where it stands, the barrier to entry for crypto is much too high for it to become widely adopted. The lingo is too complicated to grasp, the technology too complicated to use, stability is non-existent, and — for these reasons and more — it’s all a bit elitist.
Yet over time, I’m confident this will change. Remember how we went from playing Snake on our Nokias to voice texting on our iPhones in the matter of (roughly) a decade? My generation grew up on the end of spiral phone cords and now landlines are sale items at vintage shops.
So I imagine in a few short years, crypto will not only have some regulation in place that will further legitimize it, but will also require far less technical savviness. As the technology improves, it’ll become simpler to use. Even Boomers will be able to use and understand it, and I’ll be glad I jumped on the bandwagon early.
In the immediate future, I plan to continue investing money into crypto, albeit conservatively. Like your 401(k), crypto is a long game, but one that’s higher risk and higher reward. I’m still hoping it’s my ticket to retirement in Italy, but I’m keeping in mind that most financial experts recommend making cryptocurrency just one small segment of your investment portfolio. Putting all your eggs on the blockchain might very well leave you with no eggs.
My focus will be on the most stable, valuable and relevant coins, like Bitcoin and Ether, because the other thousands of altcoins out there require more time educating myself than I’m willing or able to give.
I’m also unlikely to focus more effort on NFTs, at least for the time being. As cute as those CrytoKitties are, I’m still struggling to find value in them. I don’t particularly care about having ownership and bragging rights to a digital asset that I can’t actually display in my home. From a financial standpoint, like altcoins, it’s increasingly difficult to predict which NFTs in the oversaturated market might actually render a return on your investment.
I predict that NFTs will evolve beyond simply “fun and games” to something more permanent and functional. Brands across dozens of industries are already experimenting with creative ways for NFTs to add value to their products and consumers’ lives, and eventually, they could be an integral part of our day-to-day (like QR codes are today).
As I look back on the past half-year of learning, in many ways, I think I’m actually more confused now about cryptocurrency than when I started. But if there’s one thing to take away from this series, it’s that you and I should at the very least be paying attention. Unlike your favorite 2000s heartthrob, crypto probably won’t get canceled.
You are right. I hope its here to stay for the sake of all the people in El Salvador! If you don't know what I'm referring to, El Salvador became the first country to adopt Bitcoin as national currency. It was a huge gamble on that presidents part but if it doesn't work out...let's hope it does!