Sunday, May 28, 2017
Bitcoin Hype: Gambling? Investment? Or Future?
So I've finally jumped the bandwagon in the Bitcoin "hype" that I've been seeing around since last year.
I've read articles about this "virtual" money aka CryptoCurrency and I've "preached" it to friends who had differing opinion.
But what is it really? Some call it investment but some of my "real investor" friends call it playing with money aka gambling. But some say that it's a disruptive technology experiment that aims to replace digital currency.
It is definitely disruptive alright and which is why we have differing opinions. We all know how disruptive technology can change the game we all play called life. Some take it with high skepticism some take it with high enthusiasm. I'm still playing in the middle.
But I somewhat agree to what this paypal board member said: it's a big mistake to buy more bitcoins you can't afford, but it's also a big mistake not to buy one.
I truly believe in the "future" and I guess yeah, you do call this a high risk investment or yeah you may call it a gamble. I know it may be a hype now but I also know that at the rate things are going within probably the next year, this "Bitcoin" will increase value due to its popularity. More and more people will jump in the bandwagon then might as well join the ride.
Although I rarely join bandwagons... In fact, my friends know I'm one of those who completely avoid purchasing something I know that is a hype. I don't like being in bandwagons as with everybody else.. But why is this an exemption?
SURE you may call it gambling.
But one thing's for sure is that this is a teaching opportunity to understand the Law of supply and demand in action.
I myself is still trying to learn it. It's easy to understand the principles but the "art of patience" is so hard to apply.
Result? I end up buying bitcoins during its high price rate and selling bitcoins during low price rate. Ugh!! It's a good thing I only placed $20.
Initially I placed $10. But then, I totally forgot I added another $10 so all this time I was losing money "trading". Ugh.
Moving forward I gave my nephew a $1 and told him to "grow" it and explained to him the law of supply and demand.
This is unfortunate for me that I'm only learning the art of patience right now but I'm trying to look at this as a good opportunity to "train" my nephew about "investments" and "trading" that I wish I had learned too when I was young.
That feeling of losing money. Ouch. But it happens and we learn from it. It's a good thing I only placed a small amount (though $20 is already huge). I meant by small amount is that I'm only playing with $20 instead of hundreds of dollars or thousand like other risk takers like me are doing.
So is this a gamble, maybe.. Sure. But I'm hoping my nephew learns something from it. I told him I'm going to give him $5 and he needs to grow it to $10. And when he does it successfully he needs to return me the $5. He was disappointed lol but I told him "Well that's how loan works."
Maybe I'll lose $20 right now. But hopefully the experience that I'm teaching my nephew would help save him from losing more than $20 in the future. Unlike me, who is almost 30 years old and making obvious dumb financial decisions.
This all too well feels like booking UBER Rides. You gotta know the peak hours and don't book if the surge is high!