There has been many, many articles and posts written about this miracle product called ‘Bitcoin’ over the past year. Apparently, we have this ‘new virtual currency’ that is decentralised and precious. What was easily ‘mined’ by the use of computer CPU’s or GPU’s (Central Processing Unit and Graphical Processing Unit) can bring you profits that has just began to be realised. Many seem to be predicting that one Bitcoin will easily breach the twenty thousand price point in the near future. Here is the BEST TIME to jump on the bandwagon – put all your money into this investment and be prepared for financial freedom.
Friend, this is a lie. The best TIPS for investing in Bitcoin is this: DO NOT DO IT. I am not even joking. Do you want to know what is speculation? Speculation is making an investment without any real, firm, tangible expectation or evidence. There is no basis. Basically, speculative investment is no different than gambling. That is why people LOVE it. Gambling promises high payout – but with that level of payout, there is a very high risk. Bitcoin is HIGHLY speculative.
How can one really find out whether this is true or merely a personal conjecture of one person? Simple. Ask your friend who had introduced you to Bitcoin investment – what is crypto currency? What is bitcoin based on? What is it backed by? What does ‘decentralised’ mean? Is it a real commodity? Who handles the trading? What happens when the trading platform (also known as ‘exchange’) fails? What happens to those who are linked to the exchange?
I can guarantee you that most people would never be able to explain in succinct or clear terms what Bitcoin is all about. They are ignorant of what blockchain technology is, let alone the whole concept of cryptography. Yet, they are CONVINCED that this technology will change industries, in fact, change the fabric of humanity! I beg to differ.
I do agree that Blockchain technology IS a good technology of the future, but it suffers tremendously in a few areas – one is STANDARD. Unless a common standard is set on how things are done, you will find ‘trust’ to be low. Whether this standard relates to cryptocurrency, or to the blockchain technology itself – we all need regulation to ensure that consistency is made and given.
Secondly, in the trading of cryptography like Bitcoin, we have problem with exchanges. Why? The lack of regulation means NO ENFORCEMENT in the event that problems occur within the exchange. In Malaysia, we have Luno, shutting down its operations because of the bank account FREEZE by the authorities. What this means is: at the end of 2017, when the price of Bitcoin was still soaring, many could buy. But those who wanted to sell their coins suddenly found an inability to do so. Their investment was stuck – for a long time even until now (nearly one full year). Do you know what happened since Luno’s Maybank account was frozen? Bitcoin CRASHED and LOST 70% of its worth. I was very blessed to have only LOST RM15 on my RM100 ‘test’ on Bitcoin and Ethereum. Somehow, the moment I recognised the flaw of power given to the individual UNREGULATED exchanges, I quickly withdrew what I had, despite the small loss. The week after, Luno’s problems came!
Thirdly, read what the experts say about it:
“The truth is that the developers have absolute power to act as judge and jury. When something goes wrong in one of their buggy “smart” pseudo-contracts and massive hacking occurs, they simply change the code and “fork” a failing coin into another one by arbitrary fiat, revealing the entire “trustless” enterprise to have been untrustworthy from the start.”
“It is telling that all “decentralised” blockchains end up being centralised, permissioned databases when they are actually put into use. As such, blockchain has not even improved upon the standard electronic spreadsheet, which was invented in 1979.
No serious institution would ever allow its transactions to be verified by an anonymous cartel operating from the shadows of the world’s kleptocracies.”
So, my BEST TIP for you is: let the speculators BURN. Stay out of it. Go into Mutual Fund or the Stock Exchange of your country. Those are safer and regulated. You lose based on your ignorance of information, not because it was a gamble.