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Volatility Is Not The Problem of Cryptocurrencies

Sure, you should invest in something that’s not that volatile if you reside on the more stable side of the equation. However, the super mode of the fluctuations daily or even hourly on the cryptocurrency market is one of the reasons why it’s so attractive, it’s so valuable, and it’s embraced by so many people. To be honest to ourselves that the volatility is the door for people who can and want to speculate on the cryptocurrency market to make big bucks fast and quick (well, in some cases, to lose tons of fortunes quick and fast). If you cannot afford to do so, do NOT do it. Get into more stable investment asset markets and stay away from the unprecedented super volatile cryptocurrency market.

the super mode of the fluctuations daily or even hourly on the cryptocurrency market is one of the reasons why it’s so attractive, it’s so valuable, and it’s embraced by so many people.

the volatility is the door for people who can and want to speculate on the cryptocurrency market to make big bucks fast and quick

The Good(s)

Daily Pricing Might Fluctuate For Thousands of US Dollars

We all on the front seats of the past 12-months crazy bitcoin rollercoaster ride. It went from around $1,000 USD to nearly $20,000 USD in late 2017. The valuation of bitcoins isn’t gradually over the past 12 months. In October and November last year, the pricing jumped for couple thousands a few times a day. When we looked back, it was insane but an heroic investment opportunity (if you made big bucks on that crazy ride). One day it was about $3K and the next day it was already looking up to $5K. It went from $7K to $12K in less than 2 weeks… and then took from there reaching the historical high at around $20K in late 2017.

Why is it good? Because some of us (or we should say that some of the investors) favor the “high risk high reward” approach. Also, they aren’t impatient. They also happen to be the ones who have deep pockets. They don’t mind lose but losing in a dumb and slow way. They treasure the approach which can get them up fast (and put you down fast as well). It makes the game… you know … “THE GAME” to them. Therefore, the highly volatile of the cryptocurrency market is the most ideal market for them to invest, to play, and to shine (well, if they lose, they might see it as an window to boast themselves too).

 

Many Potential Go Big or Go Home Players (cryptocurrencies)

Cryptocurrency market is still in its infant stage. You can tell from so many stories good and bad out there these days. There are also so many tech startups or big incumbents planning to go through ICO (Initial Coin Offerings) to raise money and this is another golden opportunity for average Joe(s) (wealth-wise speaking) to become somebody quick. It’s like the golden age of the stock market (50s to late 70s). You really might hit a jackpot and win big. However, there is a very high possibility that you will end up with nothing in your pocket at all. You should know that a lot of people ended up owning piles of paper which were worth nothing at all by the time the golden age of the stock market ended. This cryptocurrency market will go through the same cycle as the stock market went through before. It’s a norm, it’s a pattern, and it’s a fact that some people (a lot of them) will get rich (super rich) fast and some people (a lot of them) will lose everything they own if they are NOT careful on this type of investments.

Note:

Invest at your own risk.

 

The Bad(s)

Anonymous & Untraceable

The anonymous and untraceable parts on the cryptocurrencies. Yes, it’s the core value and it’s why bitcoin was being invented. However, due to the popularity and the value, this has become the nightmare for all investors. Why? Because even if you are good at investing in this highly volatile market, you might be profiting millions of dollars one day and waking up having nothing due to some clever hacks on the crypto-wallet that you use to store your investments. It’s not because you lost your $ on the market, it’s because someone who just virtually knocked you out totally, grab the money from your pocket, and walk away heroically. There is no way you can trace your loss. There is no way you know who is behind that since, well, it’s untraceable and anonymous as it started and it has been.

 

Too Many Seemingly Good Lemons

It’s the problem when you have great opportunities. The strength might be the weakness as well. That’s right. There are tons of choices you can bet on; however, there are bunch of none-sense cryptocurrencies out there on the market as well. Seriously, go ask around in the startup industry that if you want to raise money from VCs, you can just sugar coated what you are working on with a name of “cryptocurrency”, “blockchain technology”, or “crypto-” with something then you will have a huge chance of secure the initial fundings. Some startups even just got cash through a night out in a bar because they just bragged about what they are working on with a prefix, “crypto-“. Most of them will go down on the history book as bad lemons and people who invest in those lemons will end up with nothing in hands but anger and regrets (that’s right … not even a cup of lemonade).

 

Summary

Although majority of the money people in the financial industry caution the public on the cryptocurrency investments. A few of them even go one step further calling the crytpo-market is the biggest fraud in the human history (well, think about it that what isn’t a fraud if you dissect from different angle? The stock market is a fraud, the bond market is a fraud, or even the whole startup industry is a fraud as well if you really want to argue). However, when it’s an opportunity and it’s legal then it’s an opportunity. It’s a cliché but “when an opportunity knocks, answer the door” is really what you should do here. But, remember that proceed with extreme caution though since it might be Santa Clause giving you presents OR a big hungry bear hunting for foods.

 

when it’s an opportunity and it’s legal then it’s an opportunity