Centralized vs Decentralized coins.. Why should a simple investor care about it?
Every day we can see debates between various coin supporters in steemit, twitter etc.
Name calling, clever arguments, stupid arguments, well informed people, completely stupid people, they all have an opinion (as a wise man said, opinions are like buttholes, everybody has one).
I want to hear your thoughts about this question:
Why should a not tech savvy guy, who just wants to invest and profit and has no knowledge about the technology should care wether a coin is centralized or not?
I'm not talking about lazy people who don't do any research, and buy whatever their barbers brother in law recommended at ATH..
I'm thinking of e.g. a 45 y.o. cornershop owner who heard the news about XYZ coin major partnership etc.
Isn't he supposed to behave like he's buying stocks? That is research the team, the use case, the partnerships etc, and wait for a price dip to buy in?
Why should he bother if e.g. ripple holds half the coins, when the one major announcement comes after the other?
I'm asking from an investor's point of view, not as a developer (which i'm not)
Please be polite in your comment :-)
maybe buy the news sell the rumours . Like you mentioned each individual have their own opinions, sometimes we have different perspective of things/event/ppl
As long as it's within that individual means financially and he/she making progress, profit it's all good.
From an investor point of view, does it make sense to you a company with almost no revenue being vauled as the 10th largest company (by market cap) in the world?
Of course not, but in crypto marketcap doesn't mean anything. It's just for comparissons.
Unlike stocks, you can't sell all coins and receive the amount of the market cap, the price would drop 99,9%.
Also, many projects have a hypothetical valuation of billions, in a few months form startup, without even a complete working product. That doesn't make sense either...
"Unlike" stocks? So you propose that if e.g all Apple holders wanted to liquify their stocks there are 750 billion in the market to buy them? I think you remember well what happened when everyone wanted to sell their stocks in your country (2 times). Anyway that was not my point. The comment was specifically about XRP. When XRP was worth of 3.7 dollars the Ripple company had estimated value of 222 bln. Things that don't make sense don't last.
2nd note about XRP again but not decentralization. What Ripple sells is its software that aims to replace the current SWIFT-BIC protocol. XRP is not needed to trasfer value. Banks do not need XRP to use the ripple software and the only reason for the rise in price is that most people don't understand this. Don't get me wrong. If you made decent profit investing at XRP good for you. Hearing to other crypto traders success stories cheers me up as a trader too. But as a long time trader you must have heard the famous Warren Buffet quote:"Only when the tide goes out do you discover who's been swimming naked. "
Of course, banks don’t need to hold xrp. They use it for 3-4 seconds as a bridge currency to transfer from e.g usd to jpy etc. XRP is on demand liquidity that will be provided by market makers and exchanges who will sell it and buy back in seconds, gaining some spread. This is what will drive demand up, not banks purchasing xrp.
I think western union knows something more than us mortals...