Is the latest Crypto Coin surge and crash – a dangerous case of FOMO?
We are seeing the DogeCoin fever with Elon Musk’s tweets causing a spike and fall in values. And this dangerous trend has been seen with earlier periods as well – remember stocks of Enron or GE, anyone? Add that risk to something that is based on the value of nothing. Crypto Coins has become the same thing that it swore to defeat. At least in the previous cases, there was underlying some sort (even though sometimes of no value).
The speculation-based investment has become the favorite pastime for the folks during this Covid19 pandemic time. With a couple of recent surges with stocks like GameStop, Newbie investors are convinced of their investment capabilities. But there’s a saying in the investment market – “Every stock pick in a Bull market is a winner”. And almost always, a Bull market is followed by the cyclical bear market, where most new investors are left high and dry.
This gambling investment behavior where a one-in-a-million chance of making a fortune leads to betting their life investment, mortgages, and retirement funds in a non-recoverable money pit. And the worse news is that this behavior is exploited by others for nefarious means. Black Money circulation across the world, Terrorism funding, Deep Internet sites, Ransomware hackers – All of them found haven in Crypto coins – a new, highly secure way of currency transfer.
While the benefits of the blockchain are highly valuable, the cryptocurrency class will burn down the general public’s savings. And if you’re still inclined to “invest” in a cryptocurrency like Bitcoin, Dogecoin, Fakecoin, etc., do it if you’re investing only 1-2% of your net worth. And if you’re doubtful, invest in the stocks of well-known firms – some of these are available for a good bargain value. Cheers!