Why I won't invest in cryptocurrency :O
Myself being a cryptocurrency enthusiast and investor, I find the title of the video highly controversial.
BUT HANG ON!!!!!!!!!!!!! Once you are done with the complete watching it, it might influence you too. It describes the problem in three folds.
"The first reason is due to the fact that I don't understand it. While I understand the basics, I don't have a full understanding of the blockchain payment networks. My number one rule when it comes to investing is only to invest in things you fully understand. "
"The second reason why I won't be buying Bitcoin is due to the volatility. I do not invest in volatile assets. If anything, I occasionally trade them if they meet my number one rule of being something I fully understand. Volatility is not something you want in a long term investment. The rapid appreciation in the price of Bitcoin makes me feel like this may be a speculative bubble. I may be wrong, and I am sure you will not hesitate to correct me if I am. "
"The third and final reason why I won't be investing in Bitcoin is due to the low transaction volume.
Average Daily Transactions (7 Day Average)
December 31st 2016: 258,197
September 1st 2017: 251,543
Increased awareness and interest surrounding Bitcoin should be resulting in an increase in transactions. To put this into perspective, Visa alone handles 150 million transactions each day. Based on the September 1st transaction data, for every one Bitcoin transaction each day there are 596 Visa transactions. The Bitcoin payment network has a crumb of the total transaction market share.
At the end of the day, Bitcoin is a currency and as such it should be active. It should be changing hands. Most people are buying and holding Bitcoin, and as a result this defeats the purpose. Due to the volatility, I don't see Bitcoin as a functional currency and I am skeptical of whether or not it ever will be."
I know that this might invite a lot of strong negative opinion on the topic but if people think critically, the 3rd point is beautifully written and mostly correct to what is happening. I would appreciate if someone could enlighten the points or find a flaw or if something is wrong here. Till then, live long bitcoin <3.
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Thank You!
Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
https://www.youtube.com/watch?v=GzVO3nDEOgkGood logic, I also can't fathom the rapid appreciation. With sure a large rise, there must be a correction coming.
love it!
I actually think a lot of that is accurate hence why I believe BTC will not be money but a store of value. Gold isnt used as money anymore yet is still desired because it holds wealth. BTC will be the same.
I look to LTC or something else to handle the microtransactions.