Now, as bitcoin charts show the price 50-day moving average has fallen below the 200-day moving average—a pattern known as the "death cross"—Coinbase cofounder Fred Ehrsam has warned "most" cryptocurrencies and crypto-assets "won't work" and "90% of NFTs" will have "little to no value in three to five years."

This is a portion of a Forbes article about the much talked about “Death Cross” that is spreading fear among Bitcoin investors. Now, if you follow me, you know I like to rant on people making comments like this, but not today.

I am pretty sure he is right on this topic. Ehrsam is essentially equating this to the internet, he goes on to say there will be millions and millions of cryptocurrencies and NFTs, just like there are millions of websites. Almost all those websites don’t make money, and crypto will be the same way.

So, what is the upside to the co-founder of Coinbase making comments like this. First of all, I don’t think he was looking to tank his business just for the fun of it, in fact his comments go hand in hand with the Coinbase business model. Coinbase only lists the most common and stable cryptos with a documented history of value, utility, and success (well, maybe not DOGE.) They understand that the other thousands of cryptos will not make it long term. Sure, they will miss out on some crazy gains in altcoins, but that is not their model.

Look at it this way. In the late 1990’s people were throwing their money left and right at any company that had a .com associated with them. Now, if you put 10,000 dollars in Amazon, you are looking pretty smart. Now, if you were like me and invested in Earthlink, then you threw away good money. (FYI, Earthlink is not around anymore.) Most of those dot coms never turned a profit.

I think Ehrsam is right to set these expectations for investors new to the game. His comments aren’t helping recover from the recent drop, but, it may help to shed light on where people need to look for long term stability. If you are here to gamble and take some flyers, go for it. Just be ready to take some hits. If you understand this and are ready to lose some money and have fun, then have at it.

If you are looking for some long-term investments, heed the words of Mr. Ehrsam and understand that most of the crytpos and crypto assets you are looking at will not have value 5 years from now, and probable a lot sooner in most cases.

Thanks for stopping by. Remember to test the water first and your bathing suit pulled up.