Bitcoin and Cryptocurrency fairy tale? Or a peek into the future?

Crypto Failure

Majority of today’s cryptocurrencies will probably fail because they are too much alike. Once you have a scalable crypto that does its job as an intermediary, why would you need more? With that being said, I do see the potential for cryptocurrency replacing stocks.

Crypto Evolution

Here is an example, let’s say McDonald’s decides to test things out with a McDonald’s coin cryptocurrency. It starts out cheap just like all the rest, and some people shy away from it because it’s different. People start buying it though, because hey, it’s Mcdonalds. Over time as the coin starts to gain more and more value, stock investors start to take notice. They can see that the gain percentage on the McDonald’s coin is giving way higher returns than their stocks. Investors start selling some of their stock and buy McDonald’s Crypto.

The Switch

As more investors start to see their stock go down while the crypto coin goes up, panic sets in. Within a matter of weeks 80% to 90% of the stock is moved over from McDonald’s stock to McDonald’s coin. Other businesses start creating their own coin out of fear of missing out.

Stock Market Crash

In time it becomes a race for investors. The ones who sell their stocks and switch to the crypto version,make huge gains, those who procrastinate, suffer huge losses. The entire stock market crashes like never before.

Cryptocurrency Takes Over

A huge redistribution of wealth becomes a reality as so many rich investors held on to stocks for way too long. Adding fuel to the fire is the fact that only a very few number of wealthy people bought a portion of bitcoin in order to somewhat hedge against fiat currency.

The New World

Over time, the world becomes decentralized. Satoshi Nakamoto uses smart contracts in order to release portions of his million bitcoin to impoverish nations. World hunger ends!