At the onset, I'll state that I've never traded cryptos, never would trade cryptos. But, some have become incredibly wealthy doing so and there's a chance there's a long-term place in the world for them. It's also important to note that cryptocurrency is nothing new. They've been attempted as long as the internet has existed. More than 40 cryptos were created and failed in the 90's. In recent years, cryptos gained traction as a means of transacting on the black market. It is still a huge driver for their success. At one point last year the United States was the largest holder of Bitcoin in the world, mostly due to criminal seizures.
Having all of that as a backdrop here's the crypto update. DeadCoins.com tracks all cryptos worldwide and last week a new milestone was reached. Over 800 cryptocurrencies are now "dead" or defunct. That means that anyone holding any of those cryptos would have nothing to show for whatever they put into them. This as the biggest of them all, Bitcoin, is at $6,330 as of this entry which is a 70%+ decline over six months ago. What's important to know is that Bitcoin, nor any cryptocurrency retains any inherent value. It's worth whatever someone else is willing to pay for it as long as there are others that are willing to pay for it. That means that you should never consider any cryptocurrency as an investment. It's sheer speculation. For that reason, you should only use money that you're willing to gamble or use to play the lottery for example.
I'm inclined to believe that there will be a place in the world for some type of cryptocurrency. There's enough interest to will it into existence but there's no credible person who could reasonably assert a projected value or even what currency, or currencies will survive.
Photo by: JACK GUEZ/AFP/Getty Images