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Investing vs Speculation

It is often said – by bears and grumps – that the crypto-world is a bubble. These ”coins” or “chains” or whatever, that have no physical basis, have no utility. Sooner or later everyone will realize how silly the prices are and there will be a correction of epic proportions. Sadly, there is an element of truth here, and anyone who does not see that is wearing rose-tinted glasses. On the other hand, where there is risk there is also opportunity.

Anyone who has survived the dot-com bubble realizes that it is easy to get swept up in the moment. In the waning years of the 1990s, on most days, the market made money. Secretly, everyone who had invested in the market thought it was their time. They deserved the money they made on paper because they were smart enough to be in the market. Maybe they even convinced themselves that they had something special, and that they really understood the market. That was an easy attitude to have from 1997 to 2001. In fact, it seemed like the computer was going to revolutionize everything. There would be no business that would be left untouched.

Some people like to blame the Fed for bursting the bubble, but it was clear that during 2000–2002 the party was over. At the end of the storm, businesses like Pets.com and Webvan were out. At the same time, some (very vocal) people were waiting for the same thing to happen to Amazon. After all, Amazon was just a company where you could order stuff online, or so some of the logic of the day went. As anyone who is familiar with Amazon understands, the company had such a customer focused ethic they could not and cannot be confused with any competitor. And what about companies like Microsoft and Apple? They survived the dot-com boom and bust cycle, and anyone who held long term did quite well. It is always important to look at the business that lies underneath a stock. The same is true with any project that uses blockchain technology. Not every project suits a cryptocurrency, and just because blockchain technology is being used, it does not mean it is like “all the others”.

Zemit aims to attract long-term investors and not speculators. Zemit uses the underlying technology for smart contracts and not to create yet another currency. We believe that blockchain technology will cause a seismic shift in money, but it will do the same for contracts and how money is loaned.

For instance, in the future will there be any need for a paper contract with payment and delivery terms? Will this contract need to be created manually?

Most people would suggest that in the future such things will take place in real time, and settlements will be arranged quickly and securely. In the future there will be a decrease in the number of steps involved, and there will be fewer people involved in the process. This will reduce fees and increase the freedom of parties to contract the way they want and at a time of their choosing. We at Zemit are confident that this future is just around the corner.

The Zemit team is perfectly suited to create a product that will allow new opportunities for importers, exporters and lenders to participate as a part of the global trade finance network. Importantly, with reduced fees, the market will expand with increasing use of Zemit. Zemit  believes in a stable investment: one where you can sleep soundly at night knowing that your money will be there in the morning.

The Author is Dr. Murray Eiland III