If you are on any social media platform, chances are you heard about bitcoin investing news. I felt a need to express my opinion on this matter in a form of a blog post. It is only my opinion, so I wouldn’t recommend you to make any decisions based on it. Over-excitement from the positive results is the thing most people hate about investing.
Right now investing in cryptocurrencies is a big mistake and here is why!
A lot of my friends who invested money in bitcoin did it only because of stories they had heard. These stories are nothing else but dreams about easy money. I have noticed that none of them actually uses bitcoins to buy any product or service. This is actually the biggest issue here. None of these people need bitcoin, it doesn’t solve any of their problems and they are buying it for quick bucks.
The reason why this cryptocurrency has such a high price is only the high demand, which is fake. The price is getting higher with every person that makes money off of it. The word spreads around, people tell their friends that this is a good investment and they invest as well. Because of this, the price of bitcoin gets higher every day. It seems too perfect to be true, and it is. The number of people on this planet is finite. Sure, bitcoin seems like a great investment now, but the demand for it is going to decrease because there will not be any “new investors” ready to spend their money in bitcoin. With time price of bitcoin will stop to grow. But, that will not be the end of the story.
Bitcoins become popular, because people wanted to make money, and they wanted to make it easy. Soon, they will find out they are not making any. A lot of them will pull their money from investment and the price of bitcoin will start to recede. When that happens, a huge number of people will try to sell bitcoins to save their investments.
It is difficult to tell when that will start happening, but I assume we are getting close to this situation. To overcome this problem, people should start using cryptocurrencies for expenditures. If we could buy a soda can or breakfast with bitcoins, I would start using this currency. Until then, I think carrying some cash in pockets is a much better “alternative”.