Bitcoin Is Not a Stock
It is crucial to remember that Bitcoin always has been, is, and will be a currency; i.e. a medium to hold money. Can you make money from it? Sure, you can literally make thousands from investing in Bitcoin, but it should be treated as a currency rather than a stock.
And yes, people invest in currencies. My grandpa used to buy the famed American dollar with his Korean won whenever the exchange rate was favorable, as under most circumstances in non-Western nations, the dollar and the Euro might as well be a gold standard. Even though modern day traders, play the currency exchange game, the only real way to play this game without exposing oneself to immense risk is to use the buy-low and hold strategy. Purchasing currency is a way to hold wealth with residual increases rather than to attain 100% appreciation. It is a way of attaining and maintaining a currency that carries weight in the global market.
The concept of Bitcoin as a way to hold money as opposed to gain it is difficult to grasp because of how we talk about the currency and it’s enormous fluctuation upward. However, no average person today sees Bitcoin as a viable form of value exchange in the live consumer marketplace (at least not yet). The vision is that we will get to a place in which Bitcoin is literally used to purchase our subway ticket, morning coffee, etc., but much of society’s view of the cryptocurrency has not caught up to this conception.
I just wanted to remind everyone through this article, though it’s much safer to trade Bitcoin in 2020 than in years previous and though it’s flashy in gains, Bitcoin must be seen for what it is: a currency. Even though its value does not ebb and flow the way currencies connected to nations and unions do, it has a pattern of its own, and it will have an eerily similar boom-bust cycle like other currencies the more normalized it becomes. It is also important to note that, as promised, there will be a finite supply of Bitcoin which makes it susceptible to a growing disparity in income distribution and, ultimately, it’s valuation in the face of inflation and deflation. If it does indeed come to pass, the implications of Bitcoin triumphing over the USD and EUR in the global economy will be felt much more acutely than a mere increase in invested money. We are in fascinating times, and I’m excited to see where we are going.