Let’s face it cryptocurrency is the new wave nowadays. A year ago during Bitcoins surge, it seemed like everyone was talking about it. Then, the cryptocurrency decided to kit $20k and then drop off, leaving investors that invested at it’s high in the dust. In the end, many people got wiped out by Bitcoin and other cryptocurrencies alike. As far as Bitconnect was concerned, that company promised a 1% return on your money every day! That’s just not sustainable from an investors perspective. As a result, many people lost all of their savings and retirement and had very dark emotions once all of this stuff surfaced. In the article today, I am going to be breaking down why I would stay away from cryptocurrency altogether.
1. Speculative
A speculative investment means that nothing is really making it move rather than what people believe it is worth. For example, a stock like Amazon is totally not speculative. It is an actual company that has profits, losses, income statements, goods, and services, things that can actually affect the price of the stock. With crypto, it is decentralized and speculative. If you invest in it, you are basically taking a gamble as it is super hard to perform and technical or fundamental analysis on it. Also, Crypto is decentralized which means it isn’t centrally regulated. For example, if you go through a broker to trade stocks, that is centralized. As with crypto, it is different. It is way easier to get stolen from you and a lot easier to lose money through. In the end, there are way better investments out there. Until something seriously happens with the security of blockchain and cryptocurrency as we know it, I wouldn’t touch it with a ten-foot pole.
2. There are better investments
The S&P 500 and Dow has been setting record highs during the whole Bitcoin surge. The S&P 500 has an average of around 9.5% before inflation. If you invest in it now and decide to take it out once you retire, there is almost no way that you are going to end up losing money. Also, you can look into real estate which is one of the safest, most stable investments to own. This is especially appealing if you like to work on things and are good with your hands. In the end, crypto just isn’t worth touching. There are much better investments out there.
