Bitcoin, popular boss of all the cryptocurrencies; yet I am not intrigued nor understand why everyone in the crypto world literally craves to have more of bitcoin. Well, I am not one of those people who just dive into investments. I like to understand how things work, estimate my profit/stop loss. These few factors set my standards at Hodling of some certain coins or tokens. You will be surprised that my definition of bitcoin is similar to “The gasoline of the cryptospace”. Literally, from this part of the world people who are known to hoard gasoline (PMS) end up getting burnt or experience some huge losses based on the volatility of this substance. Having this idea, I gave my self a bit of distance from the huge acquisition of bitcoins, rather I have some in pieces in different places and I do not take account of them, as they are not a means of investment to me.
My reasons for loving altcoins are the exact opposite of the reasons why I refuse investing in bitcoins. The example of gasoline simplifies this; other less volatile substances are oil, grease, water and even ice: all these are known for stability and less volatile and as such can be kept even on the shelf for almost a lifetime while leveraging on their profitability.
My evasive reasons on bitcoin
Price volatility
In less than 6 months we have experienced various ranges of bitcoin prices; from $4,349 as at September 2017, then rose the highest ever to $20,089 (December, 2017); a month after this it dropped by $10,000 ; it progresses further down to $4241 barely a year after the BTC ATH (All time high); then plunged as low as $3,441 (January, 2019); it started picking again through the early 2019 to attain another high price of $10,908. Bitcoin touches down to $7950 yesterday, which is just a few months before the second halving.
All the time US-China colliding OR conniving
There are this constant politics and turmoil between these two countries, they are either in a trade war or trying all their possibilities at manipulating bitcoin either by creating alternative digital currencies as the PBoC or contending with the likes of facebook Libra. I have always been of the opinion that the US government and some of its wealthy class own a vast percentage of bitcoins, and as such is responsible for the various whales and or direct/indirect bitcoin market manipulations. The on-record seize bitcoin by the USA currently sits at 200,000 BTC, you can imagine the off-record ones right?
Bitcoin has a mind of its own
As naïve as this may sound, it is just really funny how regardless of our price and behaviour of BTC predictions; it tends to make us feel you are right and other times you are entirely wrong. Its volatile nature is still responsible for the common saying that you should only invest what you afford to loose (spare funds). It is interesting to know that sometimes its price doubles up only to plunge short or not when people get all comfortable the most. The crypto world is constantly on the edge for bitcoin. This reminds of its similarity of petroleum, regardless of its alternatives, as proven to be in continuous demand globally.
Among others is a shortlist below:
Regulations of cryptocurrencies globally
Continuous political attacks on bitcoin
Aggravating Security and cyber-attacks
Adoption of bitcoin in illicit and terrorism
NB: This article should not be considered as financial advice but my opinion about bitcoin and the crypto-market. It is always advisable to do your own research.
It is also good to admit that a lot of people have benefited from the volatility of bitcoin and have become wealthy through the strategies and proper research