Before You Buy Bitcoin

Consider this first

Photo by André François McKenzie on Unsplash

Even if money whales are now getting on board, Bitcoin is not a currency. Amazon does not accept it in exchange of goods. You are unlikely to spend it on groceries, even if Paypal now allows you to do so smoothly.

With “Speculation”, it has been gaining value as millions pour their money onto the platform. This also means that the value “gains” earlier investors capture is effectively wiped out from the cryptocurrency’s valuation, effectively making it a Ponzi scheme.

There’s only so many people in the world, the cycle of new investors coming on board would eventually come to a halt. Sure, you shouldn’t put your faith in fiat currencies, but cryptocurrencies are not upheld with a social contract. Remember the next time you withdraw Bitcoin “profits”, you are effectively withdrawing someone else’s money.

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