Understand the Cryptocurrency Bubble

Investment in the encrypted world requires knowledge, skills, and courage to beat peers in intelligence, the good understanding of crypto assets and comparison of dealers and institutions is necessary, as individual investors you can’t find each and everything about the future of the crypto asset and never beat the complete team.

Bitcoin Sideways

After Bitcoin reached the maximum level of market acceptance and going sideways new digital currencies emerged like mushrooms, one by one, many analysts, experts, and coin specialist start speculating on those mushrooms currencies, many suspicious agents in the crypto market puling the unknown currencies several times in order to make specific cryptocurrency hot among new investors, the charm of these currencies lies in its very low value as well as speculation by experts.

Government Role

The government role is to protect its citizen against any kind of fraud, theft, and malicious activity if the currency is the virtual one and without a government endorsement then virtual currency always looks like a scam, people think that crypto assets are scared just like the precious metal, but the whole idea is that these new sacred digital currencies are the computer-generated code and never have the intrinsic value as gold, the precious metals can be used in jewelry and other commercial or industrial purposes, how one can use the digital code, it is the fundamental question.

Buffet and Munger

You can’t completely ridicule Buffet and Munger, after all both guys have a lot of experience and talent, however, the current profit of virtual currencies is large enough, but both guys echo the special intelligence for investors to keep their distance with these assets and these currencies kidnapped the existing monetary system, both guys figure out the true understanding of the logic behind these crypto-assets, before investing all of your savings at least observe the short supply mechanisms, maybe this will lead you to see the future in crypto investments.

Lottery Ticket

Today crypto investment is similar to buying a lottery ticket, you only invest a little and earn a lot, but in case of investing thousands of dollars and earn a hundred thousand dollars is fishy behavior, if everyone thinks that their money doubles by 100 times it sounds like a crypto bubble that will be burst on one day, and all of your earnings and leverages smoke out.

Gap Between Rich and Poor

The gap between rich and poor is not because of the availability of funds but their understanding of capital, money, and the actual value of assets is the dividing line, most innocent investors think that one day they get rich overnight therefore they work hard and willing to give their hard-earned money to those agents, who deliberately pushing up the prices of unknown crypto assets and received the money from multiple investors due to this, these agents become rich overnight, the experts’ suggestion is to use your rationality rather than believes on other speculation

Unknown and Inexpensive

Do not rush for unknown and inexpensive ideas these coins do not make a fortune to you, if you bet on those coins you will prepare yourself for a flash crash, calmly think before dive in, take the small risk before the bubble bursts, to be honest, if you can’t find the fortune yet, not means that you will increase the size of the investment, maybe your earned in previous investment, stop there not pour all of your funds into new rubbish coins.

Source: https://medium.com/cryptocurrencies-ups-and-down/understand-the-cryptocurrency-bubble-1a50bcc57417?source=rss——-8—————–cryptocurrency