My First Experience with Investing
People are freaking out about cryptocurrency price drop today and it brought back memories of my early days of investing.
My first investment was General Motor($GM) stocks back in 2008. The GM CEOs were taking out ads in automotive magazines saying that buying GM stocks will support American economy and it is a safe investment! What a big lie that was! I ended up losing 99% of my investment because they created a NEW GM and left all the shareholders with worthless stocks!
Too big to fail doesn't mean they won't screw over all the shareholders
My main point from this post is that, don't invest more than you are willing to lose in 1 speculative investment!
If you are investing for long term then diversify! Don't just put all your eggs in one basket. I have learned from my mistake from almost 10 years ago and I hold a wide variety of investments now. If the price of the cryptos you are holding drops to 0 tomorrow, how much of a disaster is it for you?
I still think Cryptocurrency has a bright future and I am going to keep holding. But the thing is no one knows what tomorrow will bring. The same thing goes for fiat currencies. How much will you be hurt if the value of fiat currency in your country goes to 0 tomorrow? Hopefully you are holding some crypto. ;)
Bitcoin is dying and its dragging the entire market down with it. The markets are literally joined at the hip with BTC, and when BTC falls because people have realized how slow and unreliable it is, the larger market ( the new money, people who have been in the game for less than 5 months) panics as they believe that bitcoin IS the market, and if bitcoin fails, then everything else does. This is part of the issue when people like Warren Buffett go on record saying that "Bitcoin is a bubble and will burst" That part is true, for the most part, not many people are willing to pay $36 for a transaction, especially one that takes an hour or more to confirm, and even more so when the developers make little attempt to fix the BTC network -
But when everyday people hear things like this is causes a massive amount of irrational fear...coupled with news from South Korea which was false, as well as news from traditional outlets that claim the market and Bitcoin are constantly dying. We risk going into a free fall in prices within the next few weeks if people don't stop spreading false information. The market dropped by 30% just on false news and an assumption that Korea MIGHT POSSIBLY COULD BE MAYBE be banned from the markets. What would happen if over a 3 day period Fox News and CNN falsely reported that "Bitcoin" was going to be banned in the US, without any proper sources to back it up? The market would implode all based on a rumour. This is why its VERY important to not follow false channels, or people looking to hype coins, its causing the market to expand in a direction that it shouldnt be going, which is the hype, pump, dump and the market is burning scenarios. This has a lasting effect on the human mind, and we'll pay for it eventually.
Yup, fake news is a big issue with Cryptos. It's almost like these mainstream news media have some agenda to take Cryptos down.....
I think Bitcoin still has life. The only issue is the transaction fees and time like you said. I'm hoping that Lightning Network will come online soon and solve those issues. After that, it should go $20,000+/coin no problem!
FUD mixed with misinformation mixed with a manipulated bitcoin futures market is what is causing this choppy market. The bankers want people to trust the stock market again and stay away from cryptos.
All fiat will go to zero... eventually.
Makes sense to play safe. With stocks dipping as much as 40% in a day and skyrocketing upwards of 50% on another day, this doesn't look like a market driven by fundamentals or technicalities.
This looks like a mad rush for money in which losers will outnumber the winners by a huge margin.
Yup, it's a mad rush for money. I've been seeing crypto traders posting about their mad gainz all over the internet for the past 3 months. And as Warren Buffet said, be fearful when others are greedy!