There is little doubt why, in the Bitcoin race every $ 20,000, people were entering the cryptocurrency market. There was a promise of massive growth, potentially huge returns on investment, and a story already told of missing as an early adopter.

So people flooded the market, coming in for all the wrong reasons, really. However, this has created a huge spike in interest and a massive price hike. Things have changed somewhat now, with Bitcoin moving to $ 6,000 instead of more than $ 20,000, resulting in a huge sell-off as investors are now inundated with the market. But what are the reasons why people buy Bitcoin today?

Enter for the right reasons

The problem was, with this massive peak of interest, that people were throwing money on something that they did not have. Had not. understand in the hope of making a profit. This sounds familiar because it happened before.

The dotcom boom was based on similar events. People jumped on the bandwagon, not knowing why, and built a huge market on a fragile base. Those who are not so inclined to technology may have shunned the understanding of Bitcoin as a new wave of technology, and have used it as an excuse. But still, as investors, they should at least be savvy with their assets.

Bitcoin is a bad asset

Compared to stocks and bonds, Bitcoin does not hold much water as a good investment asset, especially when the company is not a good asset. capital appreciation is considered long-term. Certainly, Bitcoin has significantly increased its value over time, but it lacks a few other facets.

In shares, an investor claims a claim on the net assets of the company, and as the value of the business increases over time, so does the equity . In bonds, individuals mainly lend money to the company in exchange for an agreed interest flow

Thus, these two options provide future profits and future revenues and tick the boxes for sound investments. Bitcoin can not be counted in the same breath as stocks and bonds. Having a Bitcoin today does not entitle you to more Bitcoins in the future, nor does it offer the promise of future cash flow.

Look Technology

Where Bitcoin Shines Is Like A Technology. There are those who try to separate Bitcoin and Blockchain who are wrong to do it, but their premise is right; Bitcoin should be announced for its potential as a technology.

Its use as a decentralized system of money that frees users from the tyranny and hegemony of the banking system allows transparent cross-border transfers and disrupts the financial system –

Fortunately, it's an internet bubble

Bitcoin has been compared to the Internet bubble that has erupted a number of times, and there is probably merit. In the dotcom situation, technology was used as an investment opportunity as people rushed to join the bandwagon.

This criminal base quickly grew rich in the dotcom boom. forgotten that companies have changed their names and have done everything possible to cash, including the purchase with debt.

All of these signs have been repeated in Bitcoin, and this is perhaps the best thing for that. Those who entered the space for the wrong reasons quickly got away with it. And those who remain, are true to the potential and the vision that he still has.

Should I buy Bitcoin today?

As old as the saying goes, it is worth repeating and underlining: "Don't buy Bitcoin to become a millionaire overnight. The reason this has to be said again is because it will end badly for the individual and for the currency.

If like the internet and all its associated powers today, you believe that bitcoin can change the world, so it 's worth buying today, while it' s worth it. is cheap. If you want to make money fast, leave this space alone.