Now, as with everything you find on the internet, take this post with a grain of salt. This is by no means the holy grail of judgment in regards to the highly volatile digital currency, and neither it is direct financial advice. Instead, it’s a prompt to make you a bit more curious about Bitcoin, and to perhaps start brewing a couple of ideas in your mind. We are going to discuss whether this investment has real potential, should you wait or act now, and of course, the cons and pros of various aspects of this asset.
Also Read: Where And How To Store Cryptocurrency
As with any investment, one should definitely follow their own profile and preferences. The Oracle (Warren Buffett), said he would never invest in Tesla. That doesn’t mean it’s a bad investment for everybody. I suspect the same thing goes for cryptocurrencies. Berkshire Hathaway has a distinctive investment portfolio, an acquired taste. Everyone’s school of thought is different, and as long as you are positive in your rate of success, and surely believe in what you do, there may not be a reason to change gears.
Speculation or The Future?
Again, this would depend on who you ask. There are hundreds of people pushing behind the cryptocurrency world that’s rising, but there is at least an equal amount of minds who oppose it. Most of us are settled somewhere around the average. We are not too sure of what’s going to happen, even though we might be hoping for a certain scenario. What is clear, however, is that this is not some trickery or a pyramid scheme. It’s the future, but the unfolding will depend on humanity as a whole.
Digital currency is coming, it’s just a matter of time and adaptation. Governments are already pushing on their own version, which definitely defeats the purpose of decentralized currency, but nonetheless. There are many cons and pros that come with it, and we are going to live with it, whether we like it or not. Your Google (Apple) Pay feature isn’t going to be tied to your credit and debit cards forever. Something is coming, and you can already pay with Bitcoin using a Mastercard. Innovation is happening at a pace that’s constantly increasing, moving the word forward relentlessly.
It’s not a question of whether Bitcoin is legitimate, or whether this is the cryptocurrency that’s going to dominate the world. Nobody knows that, and we can’t even argue with facts about specifics, because there just aren’t that many. The question is, do you believe in the future adoption of digital currency as the norm? Hopping on that investment train may be wise in this case. The early investors and adopters are usually the ones who benefit the most. One of the reasons for that is that they shoulder ALL the risk. Are you willing to take ALL THE risks for ALL THE rewards?
Long-term and Short Term
This mirrors almost any valid investment you can make in life. Short-term is a calculated gamble at best. You spin a wheel, with a set percentage of success and failure more or less, and you rip the rewards or cut your losses. That’s the game day-traders play. The same thing can be done with Bitcoin, on a daily, monthly, or annual basis. Is that what you are looking for? A Semi-calculated gamble?
A long-term investment is an opposite. You don’t care what it costs today, tomorrow, next week, or next month. You watch the graphs, and you watch the trajectory. You observe the major events, analyze the company (in this case Bitcoin itself), and what’s happening in the world. You aren’t in it to make a quick buck. You are in it for the long haul, because you believe (and you better base this on very good reasoning), that the asset you are investing is going to appreciate in the long run.
Of course one should stay up-to-date with all the current trends, whatever his personal goals are. A friend of mine from Qatar, a crypto-analyst, recently wrote a piece on how the US situation is affecting the pandemic market. It’s a solid read on Bitcoin, so put your safety belt on. You can find the article on cryptoly.net, and it’s definitely worth the five-second translation that your browser can automatically do.
In this thought-evoking process, you actually have the final say. Do you deem an investment in Bitcoin a reasonable idea? Do you have a capital that you could live without, in case all is lost? Are there better potential investments on the horizon? We only have so many choices we can make in our lives. If you only had a few opportunities in your life, you think deeply about it. This is a good set of guidelines to start with.