I’ve been asked this question more times than I can remember over the past 6 months: “Do you think I should buy Bitcoin?” As a student of finance, people who ask me this must think that I hold some magical information that can potentially guide their investing decision in the cryptocurrency market. This sort of attitude could one day become a problem for the crypto market. I — Austin Tolchin — just like you and everyone else on this earth have no way of definitively predicting what will happen in the future, let alone tomorrow. What I do know to be certain is this… before you spend money on an investment, you MUST do your homework.
Wise people do not invest their money without knowing what they are buying from top to bottom. Why is this security valuable? What is it used for? Does it have strong competitors? What are its long-term prospects? All of these are questions one should have answers to, and these alone don’t even scratch the surface. Blindly investing into something based on a news story you saw or based on what your buddy told you will eventually lead you to lose money. People giving you their stories on investing will rarely tell you the bad news but they will always tell you the details you want to hear.
I do not foresee any scenario where I answer the question “Do you think I should buy Bitcoin” with “Yes! I think you should go buy it right now before you lose your chance.” Why? The bottom line is that I would rather educate somebody about the technology behind Bitcoin and the crypto market than about its quality as an investment vehicle. The more educated crypto investors are, the better it is for the market as a whole. The negative effects of a correction can be multiplied many times over if herds of uneducated investors begin to panic and pull out of their positions just based off mob mentality and fear. This would not be a healthy event for the market, and tons of people would lose money.
There are so many resources all over the internet that can help educate people who would like to learn more about Blockchain Technology. All that is required to educate yourself on the latest news and even the basics of the movement is some effort and desire to learn. I have educated myself on some of the different coins out there so that I could make the informed decision to invest my money into not only a couple of the hundreds of coins available but also a computer that mines Ethereum. A few of my life-long friends and I decided that we wanted to not only invest in purchasing this coin but also to invest in joining the community of miners that make it run efficiently.
We realize that we are not going to become millionaires over night, but we also know that being a part of this infrastructure could one day lead to an accumulation of these coins that might be worth a respectable sum of money. The year 2017 has been a massive year for the digital currency market but it is clear that this technology is only just beginning to evolve the way money moves globally. This is a long-term wave, not something that will disappear in a year or two.
I have heard from countless people who are much older than me that they have no confidence in Bitcoin and that this entire crypto market is a huge bubble, but I respectfully disagree with these opinions. While it is entirely possible that in 5–10 years Bitcoin is not the dominant coin in the market, its technology has become a catalyst for innovation. Since Bitcoin’s beginning, hundreds of alternative coins have been released that use similar but not identical back bones and they have many different utilities. People are coming up with new, more secure ways to do business using the foundations laid out by Bitcoin. With a market cap of over $500 billion (still much less than the market cap of Apple’s common stock), there is still so much room for more money to come into this market and it is just getting started.
I plan on attending the North American Bitcoin Conference being held in Miami this coming January. I am ecstatic about the opportunity to be able to network with some great minds that are deeply involved in laying the ground work of incredible growth that is awaiting this market. It is truly a chance I refuse to pass up. I still have so much to learn as a student of finance about what is to come in 2018 and beyond.
All in all, I am tremendously interested in broadening my knowledge on this and once again I can’t stress this enough ... Before you invest your money into the crypto market and its promising future, invest some of your time to truly know about where you are putting your capital. Lack of education combined with your capital could be a formula to lose.
For tickets and more information about The North American Bitcoin Conference, click this link: https://btcmiami.com
For the event’s Facebook page, RSVP’s and more discussion about the event check out this link: https://www.facebook.com/events/875375279292079/
To read this same article on Medium, CLICK HERE