Everyone is just too amazed and they literally run to invest in CryptoCurrency. If you’re not investing yet in CryptoCurrency then this post might change your mind before you do.
We all know RISK when it comes to investing into any form, either Crypto, Stocks, Bonds, etc. I know Crypto can be risky and trust me it’s not about the risk.
Disclaimer:
Every investor has their own views and this is my personal view on CryptoCurrency. Please don’t try to argue, just leave your thoughtful comments if you want to.
What Exactly In CryptoCurrency?
Bitcoins & Altcoins.
Yes, you obviously heard them. The $BTC is trading at a whopping $49,194 as of writing this post and it touched $60,000 recently.
All coins trading on the Crypto Exchange, Binance except the Bitcoin are knows as the Altcoins.
Altcoins examples are, Ethereum, DOGE, VET, ENJ, etc.
Cryptocurrency, the word Crypto is used due to the mechanism it uses, i.e, Complicated Cryptography to process the digital currencies and their transactions. This is what makes them decentralized.
Decentralized usually means that the payments are not regulated by anyone and they are managed on their on the public ledger visible to anyone, and is secured by the Cryptography which makes it impossible to edit or make changes.
In CryptoCurrency, there is no middle man, no centralized authority involved unlike the Banking.
Why I Don’t Look Forward To Invest In CryptoCurrency?
It’s pretty simple for me. The very first reason is that the CryptoCurrency are not regulated by anyone at all and my money is even more at risk if anything happens in the future.
Secondly, the whole CryptoCurrency is a BUBBLE. What do you think this asset has a value of? Nothing. There is no company behind it, to generate you a balance sheet with profits or losses.
The whole crypto works on the simple Supply & Demand if you see on the bigger picture and since the coins are being halted for mining at a certain period of time which creates demand and hence the rise in value.
Thirdly, the price volatility is just way more and it can wipe out your money just like this. As of writing this post, Bitcoin fell by $20,000 in value wiping out billions in a matter of weeks.
Even the renowned investor, Warren Buffet says, Cryptocurrencies have no value and they don’t produce anything.
Ask yourself this one question, Why would you invest in something which you don’t know anything about?
Even The Institutional Investor Don’t Look Forward To Buy CryptoCurrency
Their reason is very simple too and it’s simply that the presence doesn’t guarantee you a bull market and when compared to the traditional market the crypto sector is just too small. Look at the picture below by CoinTelegraph.
Wrapping Up
Well, that was it. Yes, in the past, I do get benefitted from some crypto but that’s not called Investment. I just saw people going crazy over an Altcoin called DogeCoin and well, you can always put in some amount and take it out by selling it after getting into profit.
Even that, I don’t recommend it doing until you have a strong belief of what will take its price up. I am not against crypto, it’s just that the idea of investing in nothing is very confusing.