I’m scared of bitcoin and the craze that it has created. Why? Because I don’t understand bitcoin and I only invest in things that I understand even when things I don’t understand are kicking out exponential returns. If you don’t understand why a holding is running up you are likely not going to know when the run is up. That is a scary place to be. If you are buying up Bit right now there is a good chance that you are GAMBLING!
I consider myself a forward thinking and optimistic person. I don’t think its possible to achieve wealth without that trait. However, I also like to think that I am one that tends to find support for my views. With bitcoin there is no support. There are no sales, no growth, no revenue. It’s just this newly created “currency” that isn’t backed by any government.
For those that are in the know, there was a bitcoin crash last time bitcoin did what it is doing today.
At that point in time though I saw a lot of online retailers and even brick and mortar companies starting to accept bitcoin. I thought that BTC would for sure be taking off. We were wrong. What changed this time though? NOTHING.
We are seeing a huge run up but there is nothing holding it up but hot air. When stocks fell in 2009 we knew they would run back up because the fundamentals (sales, growth, revenue, profit) were sound. Here, nobody knows why Bitcoin is taking off they just know that it is and that is a good enough reason to get in. Not for me though. I am more than willing to miss a run up that I don’t have faith in to avoid a potential haircut even if it never comes.
For those that are interested in bitcoin I would like to hear what you think.