The recent parabolic run of Bitcoin was not stoppable, and the crypto touched $13,000. Experienced traders were anxious about this shoot up. The trend reversal was sharp and mainly predicted in comparison to the disbelief fractal.
Several Twitter users were reporting a similarity between the recent parabolic run and the disbelief rally way back in 2017. Wiping out of early shorts in Bitcoin was predicted. It has been a wild ride for several people who held Bitcoin.
No matter how high the Bitcoin climbs, it is risky for an average investor. Many looks at the see-sawing of the Bitcoin price volatility as an opportunity. However, when a particular investment is gaining a lot of price surge, and it is seen as continually improving in value. It might appear as if it is a shortcut to making wealth, and one would naturally want to invest in the asset type. One would not want to miss it. The FOMO catches up and therefore investing in Bitcoin is a lot like this.
Several investors are predicting that Bitcoin might one day become a widely accepted more of payment.
Douglas Boneparth, a Certified Financial Planner, stated, “The same way I walk into a casino with money, that’s how I view Bitcoin,” Boneparth said. “This is for fun and entertainment. I’m perfectly okay watching it go to zero.”
Boneparth opines that for Bitcoin to become widely adopted, it should be regulated. However, many do not want to see Bitcoin regulated as regulation brings it to an area from where the creators of the token were taking things away from.
Regardless of how exciting Bitcoin can be, it is not about just losing half of its value, but it is about losing the entire value. Many financial planners do not even recommend their clients to take hold of the position.
When it comes to professional matters and investment, it is not good to be emotional. Being emotional is a ticket to be making financial mistakes.
To build a foundation, a sufficient amount of work has to go in, and there are no short cuts to it. This is not an investment for slow and steady investors. This is for those who like the thrill and are ready to lose and can afford to lose. Whether someone should take a position in Bitcoin depends on how much they are prepared to lose, and how much they cannot afford to lose.