3 Reasons Why You Should Not Invest in Bitcoin

Read This Before You Lose More Money

Photo by Bermix Studio on Unsplash

This article is for anyone who sees Bitcoin as an investment. With this article, I want to raise awareness. Many articles focus only on the opportunities it can have. I, on the other hand, would like to make you alert. Despite the strong growth that Bitcoin has made in recent years, it remains delicate.

This article takes only a few minutes of your time but exposes three pain points of the currency:

  • No regulation
  • Unstable investment
  • Influenceable

After reading this blog post, you are free to convince me about crypto still, but I warn you: it is hard to win against logical thinking.

There is no regulation.

There is a good reason why regulation exists in today’s markets. Every day there are thousands of people who are affected by criminal organisations. These organisations can affect anyone. Old, young, even experienced IT specialists do not escape the ingenious tricks these criminals use.

Criminals can scam you. If suddenly $10,000 disappear from your account, that’s strange. Whenever that happens, you will be incredibly grateful to the hero who stopped this transaction. Banks do this for you. It is not without reason that there are limits on what you can withdraw daily.

In the bitcoin market, there is absolutely no regulation. You are responsible for your own money. Does your house burn down, and your card with the bitcoin address is lost? Then you’ve lost it forever. Someone who doesn’t want to withhold money from the taxman has no use for Bitcoins, nor any other cryptocurrency.

It’s not a stable investment.

Bitcoin is a currency that may be worth $30,000 yesterday, $40,000 today, and maybe worth nothing tomorrow. The market is much more unstable than other markets, which doesn’t make it a sound currency.

Have you ever been to a store with no money? It’s heartbreaking to see this happen. Once, I saw a little old lady pull up with a full cart five minutes before closing time. Because she had forgotten her wallet, she was forced to leave her cart at the checkout. She will probably remember that night forever. So will you, when you have no idea what is in your account.

To say, if you invest in something, you usually don’t need that money. You can easily compare investments to make a logical selling and buying decision based on that. You can cash out Bitcoin quickly, but you’ll never know if that was a good idea, so most likely, you’ll never sell. Many people who own cryptocurrencies are afraid to touch them because they have no idea if they will be worth more tomorrow than yesterday.

Many people think that you get rich by reacting quickly to the market. But it is more than that. You only get rich by responding rapidly to good opportunities. Spreading your money across multiple good options is called diversification. Many good decisions make that one wrong decision quickly forgotten.

It’s influenceable

A small group of people owns the market of crypto, the so-called whales. One single tweet can make prices go up or down. Welcome to the world of Dogecoin and Bitcoin.

I remember like it was yesterday that Tesla started believing in Bitcoin. The world couldn’t believe it. Elon Musk’s company accepted Bitcoin as a means of payment. It doesn’t take a rocket scientist to understand what this did to the market price of Bitcoin. It went up, and it went up fast.

It is quietly starting to sink in that Bitcoin is not so good for the environment. Companies like Tesla that were so quick to get in are currently beginning to pull back. The realisation that blockchain is not the holy grail, in turn, has the effect of making Bitcoin prices more unstable than ever. People investing in a joke coin like Dogecoin confirms how easily influenced the market is.

Keep this sentence in mind. One person does not influence the best investments you can make in your life. Regardless of whether this is a wise person or not, it is human to make a mistake.

Conclusion

Today and in the coming years, we will read something new about Bitcoin every day. Prices will have ups and downs. You have believers and non-believers.

The choice to get into Bitcoin is one that everyone must make for themselves. If you think you can live with an unregulated market that is unstable and influenceable, this article is not going to stop you. Life is too short not to take risks, isn’t it?

But ask yourself the question. Wouldn’t you be better off investing in a small business with a good business model? You’re going to get a lot more satisfaction out of this. By making decisions based on logic, you take your future into your own hands.

Writes about Craftsmanship | Machine Learning | Software Development. Read more on https://www.dieterjordens.com/

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