Every time Bitcoin dips in price, you get ‘experts’ advising people to buy. With the current falling prices, there are very many people considering buying in – especially after the thousands of stories of people who got rich from being early adopters. So should you spend your hard-earned money to buy some coins, and hold until the prices go up eventually?
Right now many mainstream cryptocurrencies are very volatile. For example on Wednesday, Bitcoin was down to $30,000 and then up to $38,000 all in one day. With such uncertainty, it is impossible for it to be a reliable form of trade.
Not one institution can comfortably completely replace fiat currencies for cryptos. That’s why for many people cryptos have become a way of investing.
With such volatility, no matter the arguments made, convincing individuals to adopt cryptos will be very hard. Unless you tell them they stand to be rich while at it. And that’s why cryptocurrencies are, for millions of those who’ve adopted them, investment portfolios they hope will make them huge profits in future.
I can say the initial dream where cryptocurrencies would be decentralised, unregulated currencies used far and wide is far from being realised. While some will say that’s debatable, the reality is this: a series of tweets by the richest man on earth can’t affect the US dollar as they have affected Bitcoin these past few days.
It is worth noting that I’ve never bought into any crypto. It is not because I don’t believe in the idea, neither is it because I have never had the opportunity. Rather it is because I’ve always felt like the risks are too high, and I’m very faint-hearted. I don’t want to buy a coin for an amount of money, only for it to fall in price when someone tweets something controversial.
One can argue that my reasons are not enough to invalidate cryptos. But I am not invalidating them. I still think the future of money will be crypto-currencies – or at least some form of it in the future. However, I don’t believe in the current mess we are in where it’s all a hustle😉.
In conclusion, if you’re tough-hearted, and ready to gamble, then buy Bitcoin right now while it is falling in price. Who knows, some institution may adopt it tomorrow shooting the price back to $60,000. And that could be your way to riches. Or maybe some influential guy may say Bitcoin is stupid, and you’ll lose all your money. Huh!