Let’s compare this all with 2017!
2017 was the year when cryptocurrencies including Bitcoin and Ethereum made the headlines as Bitcoin prices got high up to 300% from $6,000 in October 2017 to a peak of $19,650 in December 2017, in just three months.
A lot of articles can be found from popular and well-reputed media which covered the new electronic currencies. Investing in cryptocurrencies lured in investors who were looking to make a quick buck.
Undoubtedly the early investors in the cryptosphere who sold at an opportune moment have made handsome RoI. Still, a significant number of public have been caught with their pants down since Bitcoin sank to a new 15-month low of below $4,000 as of December 2018.
The Lesson to Learn
Warren Buffett stated –
“Unlike buying stocks, bonds or real estate, buying bitcoin is not an investment.”
Cryptocurrency is a form of electronic payment, and purchasing bitcoin is not similar to an investment. Bitcoin doesn’t produce any returns by itself, and buyers are on the pretext of the fact that the digital currency can be sold to another person at a higher price.
A Foolish Upshot
Bubbles are of many sizes, but the truth remains the same. Investing for the long run is a far more sensible and rewarding strategy. On the other hand, one might not be familiar with betting against traders in the financial markets with greater reach to the market knowledge on a short-term basis.
Well, that was all about the cryptocurrency. You could easily see the difference in price, if you compare it to the prices in 2017. People around the world are keen to invest more and more in cryptocurrencies, despite the slump which clearly indicates the people’s positive view and faith in cryptocurrency market.
Stay tuned for future updates!