Investment on Cryptocurrency: Is it safe? or a new scam?

Investment is a part and parcel of economic system. In a modern economic system, anyone can invest their asset to earn more and thus they take part on economic cycle. But nowadays virtual investment like Cryptocurrency is on hype. What is the base of this cryptocurrency thing? Is it safe? Or this is just another scam? We are going to discuss about Bitcoin in this post.

Opinions about Cryptocurrency on market

The vice chairman of Berkshire Hathaway Inc. , Charlie Munger warns, “Avoid Bitcoin as a plague”.

Basically, Bitcoin was started as a medium of exchange. But now it has become an investment. But it is a virtual investment, not an actual investment. As it is an virtual investment, there is no calculation & predictability behind it’s slump and growth.

Investment or business is that subject in which you have the power to influence. Where you don’t have any influence or you have no power to change anything by influencing the process, you can’t call that a business. Bitcoin is such that. The global CEO of Digital currency group Barry Silbert says “Cryptocurrency is the investment of highest risk and highest return. No other investment has a greater risk than this also no other investment has greater return than this”. The main concept and gist of this article is hidden on this lines.

Read more about Bitcoin:
1. cnbc.com here
2. consumer.ftc.gov here
3. weforum.org here
4. bitcoinsuisse.com here

Characteristics of Bitcoin

If there is any investment that has a daily fluctuation rate above 30% it means the investment is very unsafe. Warren buffet the most seasoned investor of the history of US commented on Cryptocurrency in 2014. He said, “It is a Mirage. The idea it has some huge intrinsic value is just a joke”. He means, people are not buying into the value of substance, they are just buying into the value of hype. People are just buying as the hype rises and anyone doesn’t knows the actual value.

Thus you can’t influence Bitcoin, so there is always a risk. Bitcoin runs on such algorithm that a very few people understand them. Anything that is not under your control, investing on those is a blind game. Because of not having calculation & predictability, it’s blindness increases more. That means you can’t predict it’s fluctuation.

Bitcoin has no foundation. Without any foundational value, how can any type of investment can last long? In present situation it seems like a golden key for earning money but actually Cryptocurrency like Bitcoin can’t assure you a foundational value. According to the investors around the world, bitcoin is a Virtual Scam. People should think twice before investing in it.

So is Bitcoin is not safe of are we against it?

Absolutely not. We are trying to clear that is investing on bitcoin is for you or not?

Who can have a safe investment on Bitcoin?

Bitcoin is a safe investment for them who has a greater personal disposable income. What is this “Personal disposable income” ?  Disposable income, also known as disposable personal income (DPI), is the amount of money that an individual or household has to spend or save after income taxes have been deducted. If you have such condition or income then you can easily spend your money on bitcoin.

In actual investment the predictability is higher. But because of lower predictability, one can not get out of the process with his capital in a short time. As example, one of the investor of India got $100 mn on a day, but got wiped out in a day because of rapid fluctuation.

For such types of fluctuation and difference it can’t be called investment, it is one type of gambling.