Tulip Bulbs, Dotcom stocks, Bitcoin? There will always be a new craze that everyone is flocking towards, but it almost inevitably ends in disaster. Bitcoin has made massive headlines this year, surpassing $10,000 for the first time ever, and even reaching $18,000 currently.
This kind of growth is unprecedented, and has made a lot of early investors happy. However, many people are just now jumping onto the hype train that is cryptocurrency, and to them I must issue a warning.
Yes, people have made tons of money, I’m not here to tell you differently. The point is that those who were fortunate enough to invest early have influenced many to get in now, and it seems as though everyone wants to brag about their latest venture.
If you can take any advice from this, just know that once you start getting financial advice from your high school lunch table, you should probably be weary. Whenever we see ads for how to get rich sitting at home, we find them laughable; whenever we are promised a path to riches through a hyperinflating stock, suddenly the masses are convinced.
Nevertheless, CME Group, a large derivatives and futures exchange, recently announced that Bitcoin has been added to their future market, inherently granting the cryptocurrency some validity. Many economists were becoming increasingly more concerned that this exponential growth cannot be sustained, and with increasing investment, the inevitable crash could affect the global market.
However, Sir Jon Cunliffe, a senior executive at the Bank of England, told BBC Radio 5 Live that, “This is not at a size where it’s a macroeconomic risk to the global economy, but when prices are moving like that, my view would be investors need to do their homework.”
But no one likes homework, and no one likes a very slow, steady growth of their finances through a much smarter investment. Instead, the impulse to see fast, rapid gains has continued to entice the general populous for thousands of years, and has found a way to manifest itself through Bitcoin in 2017.
At the end of the day, it’s your money, and you can do with it what you want. Just don’t go telling people about how you think everyone else is an idiot for not investing in Bitcoin like you, a genius 16 year old, have done before it spikes and goes all the way to $1 million. It’s your money, and no one cares. No one cares about your March Madness bracket, no one cares about your fantasy football team, and no one cares about how much Bitcoin made you today.