If the last two years have taught investors anything, it should be that crypto investing is a treacherous activity.
In other words, unless you have an iron stomach that can cope with epic volatility, bitcoin
Its not that skilled traders can’t make money investing in this new blockchain asset. Rather its the fact that there is a price to pay for most people: Their mental health.
Consider this. Over the last two years the price of bitcoin has done a round trip and then some. Put another way, it peaked at a ridiculous level over $65,000 in early November 2021, up from around $19,000 on November 28, 2020. Then it fell back to $16,192 recently, according to data from Yahoo finance.
It was a rollercoaster ride for anyone investing in the asset. I was not one of that contingent. The swings in prices would have wreaked havoc with my emotions, and probably most people who bet on a continuing bitcoin rally.
Worse still, at the end of those two years — no doubt filled with sleepless nights — the result was a loss for any buy-and-hold investors.
Its been a remarkable journey, especially for people who believed that Crypto in general and specifically bitcoin would become the go to safe haven asset, pushing gold out of the role following more than 5,000 years doing the job.
If only the crypto junkies bought gold instead, they’d actually have been far better ff financially and would have had sweet dreams through most of the last 24 months.
Its worth remembering that investing isn’t meant to be exciting. Its not like betting on horses for a thrill. Its a serious thing. And as many gurus have said patience is what gets rewarded more often than not.
Perhaps it would be better for the bitcoin fans to do what former colleague and crypto expert Michael Casey once explained to me. Its all about the ground breaking technology. Over time I’ve learned he’s right given the amazing things blockchain can do to help speed up and systematize previously laborious processes.
It should be surprising that Casey’s focus was the far more interesting one given his level of intellect.