Thank Goodness For Alt Coins! Let's get the particulars and warnings out of the way up front. This is not financial advice about cryptocurrency, and are only my ideas about the psychology of the cryptocurrency markets. I feel like a broken record writing this statement as almost everyone in the crypto space says this right before financial advice is being given. With that being said these are still my opinions based upon my own research, and knowledge of the cryptosphere. Take this information as a grain of salt or take it as a principle to be adopted, that is completely up to you. I just think that when there is a opportunity to shed light on a current or possible future problem, we should always share it with other people. Because the digital currency space is still relatively new, people looking to secure their future through crypto investments need all the help they can get. When I got started investing in the crypto markets I developed a genuine appreciation for every bit of information that was available for me to read for my research.
Getting to the topic at hand, the centralization of thinking about decentralized digital currencies. If we didn't have thousands of alt coins in the cryptocurrency space it is likely that Governments, and the Big Banks would already have full control of the blockchain system. I speculate that right now as we speak both governments and big banks are investing billions of dollars to shift the crypto space in their favor. I've seen the signs of this in marketing ads already, as marketing agency's use fear psychology to manipulate how people think about managing their cryptocurrency wallets. The ads I've seen already on the internet are touting how "DIFFICULT" it is to manage crypto wallets across multiple exchanges, and how “EASY” it would be to have everything in one location. Eggs in one basket type of thinking... Blockchain isn't suppose to be “SIMPLE”, one of the main buzz words used to make people believe that the cryptocurrency investment space is difficult to navigate. The word "simple" along with other hook words such as; Easy, Sensible, Limited, are used many times to create emotional responses in people, so they believe the presenter of a solution, has the only solution.
Blockchain isn't suppose to be "EASY" or centralized because it is about freedom, and true freedom isn't easy. Governments and the Big Banks right now and into the future are wanting to psychologically move everyone's thinking right back to centralization of money. Why? Because it's what benefits them the most. If Governments and the banks can convince, brainwash, or reward-condition people over time to giving them the power over digital money transactions they will remain in Control Of The System. The Big Banks will convince governments to regulate the blockchain, and how people use their crypto wallets, and they'll do it in the name of protecting people from scams etc. Meanwhile the scam is coming directly from Government and the big bankers. It's simple... No one with as much power over money as the banks have now, will readily relinquish that power to a free people.
I propose that people seek to maintain a diverse portfolio of cryptocurrencies across multiple exchanges. Make your crypto trading portfolio a bit difficult for yourself, so that you are forced to learn as much as you can about managing your cryptocurrencies. Become an expert about your money future, otherwise you may become a fool about your future money, and we all know a fool and his money will have a short relationship together. I am not sure if Big Banks are controlling the Governments or vise versa but what I do know is that neither have your money in their best interest. To keep your money yours in the future you must be fully vested in how you manage that money today. Your personal online cryptocurrency management will be used to track you, and your spending habits, etc. so that like today advertisers will sell you products that you don't really need. Managing of your cryptocurrencies over multiple exchanges and wallets while more time consuming, and even difficult in the beginning afford you greater control later on.
Don't be “smart” about your crypto portfolio because smart is centralized, specific. In stead be wise and have wisdom about your digital money, because wisdom is broad, lifelong, and not easily controlled by others. Don't fall for the flashy marketing schemes and fear mongering telling you how hard it's going to be if you don't centralize where and how you manage your money. There are to many benefits to name as to why having multiple cryptocurrencies stored on separate exchanges is a great idea. One huge benefit that comes to mind for me is that if one exchange goes down you don't lose your entire crypto investment. This happened early on in the famous case of Mt. Gox back in 2014 and other cryptocurrency exchanges along the way. In the future if Governments and the Big Banks go after crypto exchanges for one reason or another Mt. Gox won't happen to you. I'm sure right now you're probably thinking of a few reasons maintaining a decentralized crypto portfolio is a good idea. So for the same reasons you are thinking decentralization of your crypto portfolio is best for you. There are people waiting to change your mind, because it's best for them.
Respectfully,
Michaelson Williams,TSX, Author of True Success Naturally, Editor-n-Chief at MMAP Magazine, Creator of the Goal Phoenix Crypto project.
@Pantera and @Omar thanks very much for the upvotes! Much appreciated!!