Think twice before buying bitcoin
Today is the second time for bitcoin to cross the $6000 line within a week. Comparing to the lowest point in September, it doubles its price from $3000. Back to the beginning of 2017, bitcoin was traded at around $1000 which means it increases 6-fold in less than a year. Some of you may think buying bitcoin is a way to get rich quick. However, never buy something you don’t understand.
Even the bitcoin expert is not a fortune teller. Not much people can accurately predict the price of bitcoin in the future so what are the difference between a buyer with and without knowledge of bitcoin? The former one is capable of judging the accuracy of the news. There are so many ways for you to receive information. Everyone can be a news reporter and a columnist in the era of social media. (Just like me!) If you don’t have enough knowledge on bitcoin, you may be easily affected by negative news and panic sell your bitcoin.
In 2014, the largest bitcoin exchange Mt Gox was hacked and many bitcoin were stolen by the hackers. If you had not known much about bitcoin, you would have believed bitcoin got hacked and its technology was not reliable when someone in social media said so. In fact, the hack of an exchange cannot affect the accuracy of transaction records nor the technology of cryptography in the bitcoin system. It is solely the problem of that exchange which didn’t spend enough effort on cybersecurity.
The ability to judge the accuracy of the news can prevent you from losing money because of misleading information.
(The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.)
