In a memo last month on Wall Street, some compared cryptocurrencies with the Tulip mania of 1637, the South Sea bubble of 1720 and the internet bubble of 1999.

However as a block chain expert, what they do not understand is that this will change life and then the internet for ever. I am not a visionary as in big talks with people who are talking about things that are going to revolutionize how we walk, talk, and operate our lives online forever.

In my opinion though:

Bitcoin has surged nearly 250 percent this year alone, prompting many to hop on the cryptocurrency’s bandwagon. Follow the leader, is a dangerous game, but let me delve deeper…..

Sometimes investors just LUMP in, blindfolded without understanding what is the actual value or ‘TRUE WORTH’ of bitcoin.

Some do not understand what’s behind bitcoin – Bitcoin has gotten a lot of fanfare lately, but many are skeptical a crash is coming.


It’s said that cryptocurrencies are not a medium of exchange, it’s a medium of trading, so there is not any intrinsic value. Well not yet, I think.

In fact, the four greatest risks in the future, or the bigger problems I see going forward is this :

  1. The government would step in and refuse bitcoin as its own entity and would put in place regulations. That would be catastrophic for this type of asset. Right now there is nothing put in place to stop this.
  2. A major security flaw in the blockchain algorithm that would compromise its integrity
  3. A larger sell off. Like when too many people are on one side of the bus. The bus gets full and tips over. So an all-out crash or like 80% – 90% in a short period of time. Sort of like the stock market crash in 1929 when huge amount of sellers enter the market in a short period of time and wipe out years of gains. Again, Right now there is nothing put in place to stop this.
  4. A global hack where hundreds of millions of dollars in cryptocurrencies are stolen will massively decrease the trust of investors in the platform. This would immediately cause the prices to collapse

These would be the TOP four things that would keep me awake at night.

Although there are several scenarios that may cause cryptocurrencies like ethereum or bitcoin to crash in the short term, it is inevitable that they will sooner or later replace the money we are using right now.

My 2 cents.

Your feedback as always is greatly appreciated.

Written by

Ziad K Abdelnour is a Wall Street Financier, Author, Philanthropist, Activist, Lobbyist, Oil & Gas Trader & President & CEO of Blackhawk Partners, Inc.,