should I invest in cryptocurrency? Let's find the answer in this post

in #hive5 years ago (edited)

Today's topic is should I invest in cryptocurrency? investing in crypto now this is a long-overdue topic I agree and I thought today we want to look at crypto as the opportunity to invest in something a little bit more volatile and to set the scene where I want to share an excerpt from Robert Schuller's book called the irrational exuberance it's a book about bubbles and economic crisis that is happening within the market from the 90s the 2000s and I thought that nicely kind of sets the scene for us when we talk about crypto and whether crypto is a bubble or it's actually a good opportunity to invest in something very new and many of the old guys.

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What I'm getting into so the more I was researching people were saying that crypto is based on you know blockchain technology is the future but at the same time, there are people on the other side that are basically saying then okay if crypto is the future you know have you thought about actually that crypto might be bubble just like any of the other bubbles we've had in the past few years and that was really a valid question I wanted to dig into further and when I was digging a little bit more you know we need to be absolutely clear that you know blockchain is the future indeed and it's the future for secure transactions and institutions are adopting it, however, crypto using blockchain technology is not quite necessarily synonymous as being the future because up until this point it's not really backed by a government and that makes a little bit of an interesting situation and I'm not saying necessarily this is groundbreaking news for you you probably know that but I just wanted to put this in perspective and really lay out what are some of the objective facts.

Investing in crypto the same as investing in a business and his stand is actually quite similar to what he usually says about investing in gold that is he doesn't want to own any gold he doesn't want to own any crypto. After all, he feels that it's much better to spend money on something like buying a piece of land I definitely agree I mean Who am I to disagree with Warren Buffett and Jack Bogle I wanted to share this with you because you know it's good to listen to those wise and seasoned investors who are actually the richest people in the world. I've found because I believe having those objective facts it will allow you to make an informed and rational decision for yourself whether investing in cryptocurrencies is a good thing for you specifically or you should stay away from crypto so first of all experts and other well-known people in the investment community they do disagree they do have opposing views which basically means there is no necessarily single right or wrong answer in some cases it may be a good position for you to take to invest some amount into cryptocurrencies in other cases probably you don't want to bother with it alright secondly here there plenty of horror stories and plenty of success stories so depending on the type of person that you are you may be totally put off by the horror stories and you may say this is not for me I'm not gonna deal with it don't even talk about it but on the flip side if you're more risk-tolerant.

If you're willing to find somebody to buy your Bitcoin to your theory or whatever crypto comes in your own form of money that you've bought your shares just like trading with other currencies trading newest dollars with British pounds all kinds of political events impact the price so you're betting on certain odds that one currency will do better than the other and in this case you're basically trading cryptocurrencies with your dollars so should you be buying Bitcoin and any other cryptocurrencies I don't want to answer that question for you I think you can do that for yourself hopefully with some of these facts that we talked about in today's post and the way I look at it is I make the analogy of saying going to the casino so if I go to Vegas or if I go to Atlantic City fun times, by the way, it's the same thing I have some money with me which I go to the casino with the notion to win some money back and maybe double my money. But I know that there is a great chance I can lose my money in the casino as a matter of fact as we all know to go to the casino it's basically the house always wins so the odds are against me and this is how I look at crypto as well I know it's risky and I know there is a great chance. I'm gonna lose the money that I'm putting into Bitcoin for example but I'm ok with that because it's only a very small portion of my portfolio now if you're very young and that has basically as they say if you're very young is the best time to risk everything that you got to either start a business or work in a startup or invest in the risky asset you know if you lose all the money that you put into crypto so be it you've got so much time ahead of you so much of your working life is still to come. you can always make some more money but if you're somebody closer to retirement for example and if already you know you have your nest you closer to that age where you not gonna be earning any money or it's hard for you to find a job then you may want to play it safer and actually not bet on things like cryptocurrency because that too volatile it's too risky for you so again depending on your personal circumstances the answer differs but I hope you're able to answer the question for yourself with some of the things that we discussed today thank you all, I hope you have a wonderful day and if you feel very strongly about cryptocurrency investing or if you're an expert in this please share your knowledge down in the comment section I think this can help everybody so I really believe we can all learn from each other and perhaps in this case I can learn something from you.