Bitcoin Lord of crypto market !!!
To celebrate this event i find this old investment guide from 2013(30 December).
5 Reasons I Don’t Invest In Bitcoins...
Reason # 3 Performance Chasing Is Not A Recipe For Investing Success
I saw a Wall Street Journal article recently that said Bitcoins are up from $13.50 at the first of the year to as high as $782. All of a sudden, people are talking about Bitcoins and wondering if they should invest in them. Why do they want to invest in them? Because the price has gone up recently. That’s called Buying High. Buying High seems to hang out a lot with Selling Low in my experience. You don’t buy something because the price has increased a lot recently and then expect to make money on it. Ask yourself how that worked out with Dutch tulips in the 1600s, with tech stocks at the turn of the millenium and with houses in Vegas in 2006. Now I have no idea where the price of Bitcoins will be a year from now or ten years from now. Perhaps its proponents are right that it will replace the dollar as the world’s reserve currency. Perhaps it really is different this time. But I doubt it. I prefer an investing strategy that doesn’t require me to predict the future to be successful. Just as I warned you to limit your investment in gold two years ago, I’m warning you now about Bitcoins. Gold went up for 3 months after my warning, then has been heading downhill ever since, losing over a third of its value from the peak. Trees don’t grow to the sky and the tree in that chart to the right is looking awfully high. Performance chasing and market timing are loser’s games. [Update Prior To Publication: I wrote this in November, since that time, Bitcoins peaked at over $1200, fell to less than $600 and are now back around $700. Some performance chasers who bought them, then panicked, have already been punished by losing 50% of their investment.]
By www.whitecoatinvestor.com