Looking at Bitcoin over the last year or two, you might think you made a terrible mistake.
Bitcoin and other cryptocurrencies are now in free fall, doubling down on what appears to be on stock exchanges on both sides of the Atlantic.
Bitcoin is down nearly 70% after hitting an all-time high of $69,000 in November.
It is currently at $22,522, the lowest since December 2020.
According to writer John Schwarz, if you buy $1,000 worth of Bitcoin on the day that Matt Damon says is a “brave” decision, the money will be $375.
Oh.
So what should I do? Do you want to sell what you have to minimize the damage or keep hoping things get better?
It depends on many factors: the amount of investment you have made, what time it is for your investment and your risk tolerance.
Generally speaking, you should invest only dangerous capital, that is, money that you stand to lose. If you follow this Bitcoin approach and its rise or fall does not cause significant difficulty, it is best to keep your investment.
Sam Walkerring, a cryptocurrency expert at Cryptocurrency, told Exponential Investor:
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The reason is that while Bitcoin is currently declining, there is nothing to suggest that its value won’t start rising again in the future.
Bitcoin is decentralized and different from real money, but it is still used by people and companies around the world, which affects the perception of other financial products.
Technical stocks have also dropped sharply at this point. There are many reasons to doubt that they will return in the future: a year, five or ten years. The same is true for cryptocurrencies.
Bitcoin Basics: What You Need to Know About Cryptocurrencies
Bitcoin is a type of cryptocurrency that is a virtual or digital currency and is an online version of cash.
It operates without a central bank or formal regulation and generally changes from person to person when it is sold or exchanged.
In 2008, someone named Satoshi Nakamoto published a nine-page white paper detailing the vision for Bitcoin. This is called the “consent electronic commerce system”, which is outside the scope of the government.
A few months later, Nakamoto released software that allows users to “mine” cryptocurrencies.
Basically, mining involves a computationally intensive process to create new Bitcoin. The more Bitcoin you get, the more complicated the process is: it requires more computing power, which gives Bitcoin a negative reputation for the environment.
Due to the limited amount of Bitcoin that can be generated and distributed, it is scarce and theoretically worthwhile.
People can track Bitcoin ownership using cryptocurrency wallets, a digital way of exchanging payments.
Tracking is easy because the details are stored in a ledger called a blockchain. This ledger is public and contains all confirmed transactions.
The value of cryptocurrencies fluctuates as constantly as traditional currencies.
Well this is the pink version.
The flip side of digital currency is the fact that this type of volatility is an integral part of cryptocurrency investing.
If the current recession convinces you that this is more than you’re trying to handle, then you’re better off selling.
Source: Metro
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