You Shouldn't Buy Bitcoin IF…
As time goes by, there is no denying how quickly Bitcoin’s adoption has increased. Not only in use but in mindshare. Only a few years ago, it was thought of as the currency that only criminals use. But now more and more people are waking up to its real value and how important it is. As banks are collapsing left and right, people are learning that their money in the bank actually isn’t theirs. Everything seems to be lining up perfectly for Bitcoin; this is what it was created for. To be an escape value from government monetary printing, to maintain freedom, and to be a hedge again inflation. Every day the odds of Bitcoin becoming the “next big thing” only seem to increase. It is an asset that could change your life financially forever.
However, while it is true that Bitcoin is open for everyone. That doesn’t mean it’s a perfect fit for everyone. These are some reasons why you might want to second-guess buying Bitcoin, or having it make up a large portion of your portfolio.
1. Can’t Handle Stress
The key thing that everyone needs to be aware of before buying Bitcoin is how stressful of a market it can be. While the picture above may seem like a joke, there is actually more truth to it than we would like to admit. Bull markets are great and present us with many opportunities to make money. But bear markets are downright depressing. If you’re lucky, you’ll see your portfolio drop by 70%. But there have been cycles when it has dropped by much more.
While the stock market is considered to be pretty conservative in terms of daily price movements. Bitcoin is completely the opposite. It isn’t unheard of to see movements up or down of 10% or more in a single day. There will be times when the price drops much further than you could have ever imagined and then drops even further.
Becoming obsessed with checking the price can become a real problem and get in the way of your daily life. Finding balance is the key to surviving this market.
2. Looking to Get Rich Quickly
The stereotype of the cryptocurrency market is that it is a place where people can get rich quickly. With that in mind, it might surprise you to hear that you shouldn’t buy Bitcoin if you’re hoping to get rich quickly. The truth is that we aren’t one of those lucky few.
While it’s entirely possible to become rich in this market, there are two key things that we need to know. The first is that we need to have a long-term approach. Rome wasn’t built in a day, and Bitcoin won’t go to $1 million in a day either. It will eventually, but it will just take time. The second thing that you need to remember is that it will still take quite a large amount of money to become rich in this market. It takes money to make money.
By having a timeframe of decades rather than years, you will dramatically increase your odds of success. Not only that, but it will help to make you less stressed about daily price movements.
3. Wanting the Newest Technology
Finally, you shouldn’t buy Bitcoin if you are hoping to have the latest technology, constant protocol upgrades, and experimentation. Similar to smartphones. If you love to tinker with your devices, android phones would probably suit you better than iPhones. The same is true for crypto.
If you are looking for smart contracts, DeFi, or the fastest transaction output, then Bitcoin might not be for you.
With that said, in recent months with the implementation of Bitcoin Ordinals and BRC20, things are beginning to change. There could be a point in time when all of the development is happening on Bitcoin. However, in the short term, it is still playing catchup.
Bitcoin is the cryptocurrency that I’m most passionate about, and believe will be the most successful in the future. When it comes to crypto, Bitcoin is the name of the game. With that said, everyone needs to be aware of what their buying. There are a lot of options in the crypto market, and what is right for me, may not be right for you. Putting in the research and being prepared is the most important thing that you can do.
