The mantra for me has been #BITCOINBITBIDI
(meaning leave Bitcoin alone)
I have been relentlessly behind my investors to avoid Bitcoin in spite of innumerable articles and posts.
Just stick to your Goals and Asset Allocation.
Your Financial Advisor knows best about what to do and what not to do!!!
CRAZE OF THE MILLENNIUM .....the BITCOIN!!
Then comes one more investor Mr.M and sends me a Newspaper clipping which says BITCOIN gained $1000 in 1 single day and asks me
"Why did you not recommend me this....??
You are talking about SIPs which give me returns after 10-15 years but look at this...it has given in 1 day what your SIP will not give even in 1 year"!!!
I said :"M"
Is Bitcoin regulated? My God....NO!!!
Is Bitcoin a commodity? ....NO!!
Is Bitcoin backed by any Tangible Asset?....NO!!
Is Bitcoin a Currency?....NO!!
Try paying your Income Tax with it and you will understand..
Is Bitcoin easy to understand?...NO!
Even JP Morgan's CEO Jamie Dimon acknowledged that he didn't understand Bitcoins and says Bitcoins are worse than Tulip Bulbs!
If Global Banker doesn't under BITCOIN...will you and me understand it?
Do you want to buy something you don't understand?? NO...right...then why to SPECULATE..
Is Bitcoin regulated?? ....NO!!!
No SEBI,
No RBI,
No FED to regulate...
If someone frauds you in Bitcoin...you don't have anyone to turn to complain to and get back your investment.....
You want to invest in something where there is no one to go to in case of fraud?? NO...right! Then better stay away
I would rather be happy to be called as OLD FASHIONED who is happy with 15% for next 15 years than a roller coaster of 40% plus and 50% negative tweet after tweet !!
If you are in the mood of some adventorous investing., go ahead and invest in Start-ups....at least it could not only give some employment to someone in this pandemic times but could even turn out to be a lottery for you.
Dear Investor...BITCOIN or for that matter other Cryptocurrency are being used by Hawala dealers, Terrorists as it's very very difficult to track those who trade in them.
So...if you want to contribute to the TERRORISTS...go ahead and invest in BITCOIN.
Having said this...Cryptocurrency could become legal going forward and could come under regulation but till then I follow the principle of
A BIRD IN HAND IS WORTH MORE THAN 2 IN THE BUSH!!
For me, BITCOIN is a game of GREATER FOOLS THEORY.
Someone buying only in the hope that there will be another person who will PAY MORE for it and this cycle as long as it's running the dance goes on.
The moment the music stops we may well see LOTS OF BLOOD on the street.
Please understand this...
1. There is no economy behind Bitcoin.
2. There are no regulators on Bitcoin.
3. There is nothing to justify the value of Bitcoin.
BITCOIN NOT YET ACCEPTED
Someone said Bitcoin is now accepted at many places!
Seriously?
after 10 years of launch, out of 6,20,907 restaurants in USA, only 85 accept Bitcoin, and you call this Acceptance !!
TOO MANY SCAMS :
https://www.businesstoday.in/latest/trends/turkish-crypto-exchange-founder-flees-with-2-billion-of-investors-assets/story/437404.html
https://www.cnbc.com/2021/05/17/elon-musk-impersonators-stole-more-than-2-million-in-crypto-scams-.html
https://www.cnbc.com/2021/05/18/colonial-pipeline-hackers-darkside-received-90-million-in-bitcoin.html
The above 2 are just small examples...there have too many scams
Yes....scams are there even in stock markets. but at least we have SEBI, RBI, Finance Ministry who get involved and help the investors.
But where will the Crypto investors go?
Whose door they will knock if there is a scam?
MESSAGE TO MY FRIENDS WHO WANT TO INVEST IN BITCOIN :
Do not get trapped by FOMO.
Just because people known to have put money in Bitcoin, doesnt mean...you too should.
Always implement JOMO and never FOMO.
Just because people known to have put money in Bitcoin, doesnt mean...you too should.
Always implement JOMO and never FOMO.
You seem to be trapped in the FOMO syndrome ....FEAR OF MISSING OUT...This is where the majority of people lose money...
The cream is already gone...who knows what's in store
Remember the Japan Stock Market...
It has still not touched its Life Time High even after 3 decades !!!
You could just get trapped in exactly such a case.
If you look historically at the price of bitcoin, there have been a number of occasions where it's really spiked and then comes crashing down really quickly
While that can mean big returns, it can also mean big losses.
What matters is our Financial Goals
If we are able to achieve our Financial Goals with Equities, Gold, debt, and the like with a fraction of volatility and a fraction of tension...why should I think of Bitcoin.
I have always believed in the adage STOP PLAYING WHEN YOU WIN THE GAME. Period.
Remember, the purpose of INVESTING is
REACH OUR FINANCIAL GOALS WITH AS LITTLE RISK AS POSSIBLE
Why put money in something which goes up by 10% and falls by 30% due to a single tweet!!
If this is not speculation...then is this investment!
Yes...some people have made money in Bitcoin.
People have made money even in Casinos
People have made money even in Races
That does not make Casinos and Races a place to INVEST.
They are good for Gambling. The same goes for Bitcoin.
Bitcoin is good for GAMBLING and definitely not for Investment.
Relax.
Play a game of Pokemon Go or Angry Birds and enjoy the weekend.
Let's talk about some REAL investments next week!
Let the excitement settle...
Let the regulations set in place
As I said...numbers can be presented as one wants.
Attention seeking is the name of the game.
Do not fall into such a trap.
If you think I am old-fashioned....SO BE IT
IGNORE THE HEADLINES.
STICK TO THE BASICS
STICK TO YOUR FINANCIAL PLAN.
STICK TO WHAT YOUR MUTUAL FUND DISTRIBUTOR TELLS YOU.
He knows what funds fit into your risk profile, time horizon.
Good luck,
Regards,
Srikanth Matrubai
Finally what some experts have to say about Bitcoin
Warren Buffett
"Cryptocurrencies basically have no value and they don’t produce anything…In terms of value: zero. I don’t have any cryptocurrency and I never will,”
Raghuram Rajan "Bitcoin is a classic bubble. why are people buying Bitcoin, because they think it will go up. And that is bubbles thinking"
American economist Nouriel Roubini on May 19 criticized the institutional investors who invested in volatile pseudo-asset 'Bitcoin' which according to him has no intrinsic value. He also sought that those investors be FIRED ON THE SPOT !!
Rakesh Jhunjhunwala "I won't buy Bitcoin even for $5. In the world, only the sovereign has the right to create currency. The dollar move of 1-2 percent is news but here the fluctuation is 10-15 percent in a day, hence the speculation is the highest,”
He further added that “I don't want to join every party in the town. You should go to the party which you like. I will never buy Bitcoin in my life. cryptocurrencies should be banned.”
All the best,
Regards,
Srikanth Matrubai
MUTUAL FUND DISTRIBUTOR
REBALANCE VOLATILITY CERTIFIED COACH
Srikanth Matrubai, Author of the Amazon Best Seller DON'T RETIRE RICH
Srikanth Matrubai
Author of the Amazon Best Seller DON'T RETIRE RICH
You can purchase the book on Amazon and Flipkart
For the best of ideas on where to invest to create Mountains of Wealth
join my TELEGRAM channel
WEALTH ARCHITECThttps://t.me/joinchat/AAAAAELl4KUnaJzi-JJlDg/
Hi your post is very useful and very informative.
ReplyDelete