Doesn’t need to be backed in traditional sense. Investing in other currencies is risky, Bitcoin is not. Now if you purchased at its peak, then yes, you lost some money. But it’s all about mindset. Are you purchasing for long term or quick gains?
Quick gains is like playing the stock market. Or if you like me and playing the long game then you know at some point Bitcoin will be worth more than 200k per coin.
So for my life, it’s 99.99% safe. I can just hold and I have full confidence based on history that it will only go up. I also know that after every record high, that it dips and then surpasses the record in 1-3 years pretty much. This has been rinse repeat.
It seem far fetch it would be worth 1k. Then it was far fetch by common people that it’ll be 10k. Then 50k seem like a pipe dream. 100K? That’ll never happen.
But I do understand the skepticism. I don’t believe people should invest in other crypto besides Bitcoin. I’ve had people throw 30-70k into some strange non-crypto things and they could’ve made a killing by just doing the safe bet with Bitcoin.
One person who just wanted to “pay for their kids dorm” put up 250k to invest into some business. Guess what, less than a year later they lost all of it due to a “lawyer dying and lawsuits”. They just wanted to make 20-30k. That same 250k would’ve gave them a $171,875 profit in less than a year with Bitcoin.
Again, other cryptos are pretty risky but Bitcoin is the most reliable one to invest in. Of course there are horror crypto stories, but it’s very hard to have one dealing with Bitcoin. You could buy at the record high 109k. Yeah, so far you lost money but if you keep it in Bitcoin will surpass that number greatly. But you have to hold.
In general never invest what you’re not willing to lose.
“Safe” as in a sound investment with the likelihood of little or no losses is not the same as “safe” as in a secure format with baseline regulation and recourse, not prone to hacking, fraud, no backing, 51%, SBF shenanigans, Skynet online, etc.
Gold would be 50-100% more right now if not for crypto imo. I own both and see a place for both going forward as fiat gets more and more diluted. But I’d never just own one if the other.
Pretty much why I knew crypto bull run wasn’t over. Making etfs and all the shadiness Wall Street brings into things. But it also makes it more accessible to people as well. Some random boomer prob can’t set up a cold wallet but they can easily figure out how to buy an etf. Crypto for me is speculative while gold has already proven its worth for millenia. Everyone should own a little of both.
So they’re gonna use these as a reason to beg for a bailout if and when that should be needed
Blame all the risky betting small timers that buy a lottery ticket with 0dte bets. Wallst has been able to use these instruments forever but now the little
guy has access and it’s causing too much volatility for them?
Last thing I’ll add on markets is don’t drink the “Trump will fire Powell” kool-aid. He can certainly try, but it will take 1-2 years before SCOTUS will make a decision on Humphrey’s Executor. He can’t fire Powell at will, so don’t take the CNBC clickbait.
I am dumping all my stock based ETFs that are in the green and buying GLDM. Between our 401Ks, my RSUs, and our remaining stock ETFs, we are already highly exposed to the stock market so gold feels like the safe haven to balance the erratic stock market.
Momentum stocks can giveth and taketh (haha). I felt I was greedy enough with it, and I’ll take the capital gains treatment. With my luck, watch it rocket to $200 next week! I don’t know what the future holds, but I expect violent volatility in both directions.
