I've read all the posts in this thread, and have a couple things to suggest for consideration for those venturing into blockchain currencies (CryptoCurrencies). They are the rage all over the world, and at the moment if you can time things correctly, make real profits through their inherent volatility and demand. The primary reason for their growth is demand, and the implied limits of supply is due to the complexity of creating the blockchain and other reasons.
There are some things to think about, and some of these have already been discussed:
1. Will extreme volatility cause you to buy high and sell low - need to be careful on timing the transaction?
2. Will new blockchains reduce demand for the blockchain you are holding?
3. Will the new blockchain you've bought into, ever or never grow in demand?
4. Will there come a time when too many blockchains have diluted the available demand?
5. Will countries start banning the use of blockchains for purchase of items, or conversion to cash - as noted with China's recent move?
6. Will government agencies start carefully tracing all identities of those who've converted cash into blockchains or vice-versa?
7. Will government agencies figure out a way to decrypt, block, or otherwise invalidate blockchain transactions?
The seventh item is one that recently captured my attention. Specifically, I've been following with much interest the new development of Quantum Computers. Without going into an involved conversation about quantum mechanics, and the elaborate complexities of how these systems operate, it goes without saying that these computers are beyond anything we've ever seen. They work on very specialized problems that regular computers cannot touch - like hacking secure hash algorithms (SHA) as one example. With a 256 bit SHA, the most advanced non-quantum super-computer in the world, would take a long time, maybe hundreds of years to solve. A quantum computer may be able to crack this in less than a day - maybe hours. There have been rumors that the NSA already have installed quantum computers (like D-Wave or IBM Q), and are working on this currently. Thanks to their creators, there are a lot of safeguards in blockchains. However, what if these government agencies can crack the code in all these safeguards in a reasonable amount of time? Then what happens if central banks of these government agencies find these currencies detrimental to their control? There are many other reasons why cracking these codes is something to consider for the future of something like bitcoin, ethereum or LiteCoin.
It was with great interest that I found a recent article that Russian scientists were working on a way to secure blockchains from the quantum computer "threat".
https://www.technologyreview.com/s/...cured-blockchain-technology-tested-in-moscow/
I'm generally not a conspiracy theorist, but the above article tells me that it's "game-on" in the world of blockchains and cryptocurrencies. My opinion is that it's only a matter of time until the so-called "deep state" government agencies can quickly identify someone making transactions with bitcoin or other cryptocurrency. The reason for the extreme growth (i.e. demand) is varied, but the primary reason overall is to hide transactions from governments. I've read stories about mega-wealthy Chinese business people, converting millions or billions of Yuan into BTC, skipping the country, and popping up as millionaires in other parts of the world. Apparently the Chinese government doesn't like this idea. Then there are all the really bad sorts of people on the dark web, transacting lots of crazy and very illegal things for bitcoin. These are just examples of why governments are highly motivated to control blockchains, and quantum computers may provide them a way to do just that.
