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Well, we hate to throw cold water on this party (well, actually it is kind of fun) but here are five reasons why you might want to reconsider your belief in the whole cryptocurrency sector. These reasons are of course in addition to Warren Buffett’s warning prophecies on the whole issue as well.

There are too many options

Currently, there are more than 1,600 different cryptocurrencies, and more seem to be launched every day. Suppose you are a merchant. How do you decide which one to accept? Say all the negative things you want to about fiat currency, but at least it has this going for it — the government only issues one single currency, not thousands.

Too few places to use them



So far, cryptocurrency holders seem far more likely to ‘hoard’ their coins rather than actually spend them. For this reason, there are very few merchants that will actually accept them. And, with all of the initial coin offerings (ICOs), guess what currency you have to pay in? That’s right: dollars. Even companies that are raising money by selling ICOs still want actual dollars in return. That’s not a strong endorsement.

Advertising is being banned

I remember last year, when my inbox and social media platforms were bombarding me with ads for cryptocurrency trading platforms. But, now, many media companies have outright banned ads for cryptocurrencies, with concern that their customers will get sucked into something they don’t understand. With far less marketing, consumers will be far less likely to continue to keep up the frenzy of the cryptocurrency market. Last year, as an example, binary options advertisements were banned, and it effectively killed the industry (which was a good thing!).