Ali Hasan
Is it a Bird?
Is it a Plane?
Is it Superman?
No, it’s Bitcoin.
Bitcoin just crossed $20,000 for the first time in its history and after a few days it gained further $3,000 and reached a peak of $23,000. Bitcoin is the new gold and everyone is chasing this crypto currency which is based on block chain.
According to experts, block chain is the most important development in the history of humanity after the internet. It is because block chain is a technology that’s almost tamper proof. You can’t hack or rob it as to do this you would need to change hundreds and thousands of ledger entries which would almost be impossible.
Even the government can’t print more of it out of thin air. This makes it inflation proof. For investors, Bitcoin might be the best investment as it’s expected to rise 20-50 times in the near future and reach $1 million.
If you can invest some of your money into Bitcoin, you’re almost guaranteed of handsome returns. But what if it’s a bubble? Something similar happened 3 years ago. In December 2017, Bitcoin was almost $20,000 and people were buying it in crazy volumes.
Some people invested their entire savings hoping to double or triple their money. But soon the bubble ended and Bitcoin crashed and lost most of its value. Millions of people lost their money. My friend lost his money too. This has happened before and this can happen again.
So should you invest in Bitcoin or not?
Well this is really a difficult question as Bitcoin is relatively new and we don’t have much history and track record to make an accurate prediction or analysis. People are in confusion as they want to invest in Bitcoin due to the fear of missing out (FOMO) but at the same time they are also afraid that it might lose its value just like it did in 2017.
Our advice would be to follow timeless pieces of investing advices such as:-
- Do your own research
- Only invest in what you understand
- Never borrow money to invest if you lack funds
- Only invest amount that you’re comfortable to lose
- Educate yourself about investing
These investing principles should be followed before investing into any asset.
Your safest bet would be to monitor Bitcoin regularly and study its trends to draw accurate conclusions.
Talk to people who deal in Bitcoin, watch interviews of experts, only then invest in Bitcoin. You should first invest a small amount to experiment and if successful, then you can increase your investment.
The temptation would be high, the fear of missing out (FOMO) would be even higher but remain grounded as we don’t know whether this is a bubble or not. But we do know how each bubble ends and they end quite painfully.
If you don’t want the pain, become an intelligent investor and educate yourself as much as possible. We wish you Merry Christmas in advance and hope that next year will be a better year for humanity.
