I Could Never Invest in Bitcoin because of Price Volatility
Investors don’t have skin in the game until the money is on the table. Any money you place in Bitcoin you may as well kiss goodbye. It dropped 50% in one day you know. Did you also know that it’s not nearly the first time a sudden crash happened? Here’s a link to give you a historical perspective on why you should kiss your money goodbye.
Want to lose your money in Bitcoin? It’s easy. Put your money there and panic sells when the price inevitably collapses. Look at the chart above. It happens all the time. When you witness your money free fall the natural reaction is to sell. Plus, Bitcoin crashes far more frequently compared to any other investment across time.
This is a short term approach. The red column above is where Bitcoin casuals get shaken out. After all, it’s all about money. And the casual’s money just got cut in half! This is where TV pundits have a field day calling Bitcoin a scam. For the pundits it’s all about a big red number and a sensationalist headline.
Then how do you explain the columns above labeled “Bitcoin High Price” and “Bitcoin Low Price”?
Suddenly the price action looks much more stable. In fact the price looks downright attractive. Numbers can do that to an investor. Show someone the wrong column and suddenly you have a very black and white outcome. Give them the full picture and suddenly the price action begins to show itself.
Invest in the short term and get REKT. Invest in the long term and it is the greatest savings account ever invented. We call it HODLing.