Today bitcoin stands somewhere at a 50% discounted rate than it was trading around an year ago. Accept it or not, when you first put that first dollar into bitcoin (had this been in last year or so) all you knew was that it was rising every day and it will probably end up on the moon. Your biggest financial advisor was your next-door 15-year-old Andy who said his crypto gains were over 100% in the last few days, but where is Andy when you need him the most? Didn’t you put in the money because he said it and obviously bitcoin was all around the news so what could have probably gone wrong? Well, it kind of did.
Accept it or not, but bitcoin or any kind of cryptocurrency is nothing but a lottery ticket you buy hoping that you would win big, with a little higher probability of winning than an actual lottery ticket. Clearly, putting money into crypto is not an investment decision, it’s a gamble that people are playing. Nobody knows who owns this, what’s its actual worth, or where it will end up eventually.
Just think about it, you woke up one day and see your so-called secure crypto wallet got wiped out completely with 1 million others just like yourself. ‘Satoshi Nakamoto’, who we don’t know who he is or are(maybe a group of people), just decides to put an end to the blind chase game and just vanish. Well, that’s a total different topic to discuss, maybe we’ll touch upon that someday later, but let’s discuss where bitcoin is standing today. Should we put our money in now or should we wait more? or is it going to collapse ultimately?
Bitcoin – Should we put in our money today or not?
If you ask any crypto trader why they are putting their money into crypto, their simple answer would be ‘quick profits’. They are not putting the money for their child’s education, or probably for a secure future, they are doing it to spend it all. But it is where it all becomes highly doubtable, will this market last long, with investors/traders holding this kind of mindset?
There has always been a debate about buying the dip when it comes to buying stocks, so we should also buy the bitcoin dip, right? Well, that’s still debatable.
Should you buy the dip?
You buy the dip when there is not a probability but kind of a surety that there will be a bounce back. Stock markets have a track record of years where there have been dips and then recoveries. One should understand that when we invest in stocks they are nothing but companies which are made up of people, and it is human nature to get knocked down and then get back up. Whereas the story is a little different with bitcoin and other crypto currencies. In crypto, it has always been an upwards journey. Their might have been few falls but not as big as it has been this time.
With limited data and the newness of the crypto markets, it is very hard to guess what direction the whole market or the whole crypto universe would take. Although if it falls, there is still a possibility that it will get stable at some point, just like we see in Dogecoin nowadays, but that point still seems to be far below. For those who expect this to go back and become a turnaround story once again, we think that it will not be so quick this time. You will have to become an investor if you wish to look something out of crypto now. Those overnight million-dollar gains might become a story of the past.
With this, it’s a wrap, will be back in some time again with an outlook on crypto and bitcoins.
Stay same, stay vigilant, happy investing!
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Disclaimer: Views expressed on MoneySymphony.com are just an expression of thoughts. To no extent we are or shall be held liable for any losses or conflicts. MoneySymphony.com suggests users take advice from certified experts before taking any actions or investment decisions. User actions may carry risks. All decisions remain the sole responsibility of the individual only.