Topic: There is something wrong with understanding Bitcoin - page 2. (Read 261 times)

Bitcoin has nothing to do with fiat currency, they are distinct in their own ways. Bitcoin can be used as substitute for fiat currency and it’s not regulated by any agency or government like the fiat currency. Bitcoin does not provide any protection of value to fiat.


Many people from ancient times are still finding it hard to switch into using this type of method to store money and still glued to the traditional banking system till day. You can’t blame them, new invention usually takes time before it is widely accepted globally.


Only individuals with little or no knowledge of bitcoin are concerned about its volatility. Those who have been in the market for a long time do not panic when there is market volatility, but rather take advantage of it whenever there is an opportunity to buy more. Anyone claiming to know about bitcoin should not worry, but if they do, they may be considered beginners who are simply afraid of facing market reality after learning about it.

With the ease of investing today, there is no age limit for anyone who can invest.
Especially in crypto investments that do not require KYC to make an investment in Bitcoin.
No need for an investment company or portfolio manager. only with a smartphone everything can be done easily.

But yes, with this convenience, beginners will enter without any knowledge or expertise, so they will easily get trapped and lose the value of their investment and their emotional tendencies will be disturbed when the investment fails. Psychology will be disturbed and make them to panic.

Investing in Bitcoin is different from investing in stocks, bonds, and real estate.
The risk will be greater, with faster price fluctuations due to high volatility. it will play with the psychology of beginners.

So, it's really important to understand how Bitcoin investment works to avoid panicking and losing more.

 In the future, the fiat system will be replaced by Bitcoin.
 And people will ready to learn how to go about before starting, this is the basic reason why there are so many investors loosing their investment at the end is because they lack knowledge. Because everyday the technology is upgrading and the technology is getting stronger.Also, as the market is generally known to be volatile. And before that time many younger ones and youths are also more dipper in Bitcoin investments, you know the old would not rule forever. And for gold, gold will remain there as an asset of investment. Gold is here on Earth's for more than years, and it's still available, in the world majority of the countries are still using gold. Gold however, will remain important and valuable.

For a decade people are hearing about Bitcoin going up and dying several times, yet up to this day it's still alive. They sure have an understanding of what BTC does. Whether they see it as investment or currency, it's going to make them profit.

It's not the understanding of Bitcoin that is wrong, its what they believe it can do in a short period of time especially when they see it as a get rich quicxk.

What kind of Bitcoin knowledge claims it will only go up in price? There are plenty of factors that have the potential of seriously crippling Bitcoin price for a very long time.
Panic is an emotional state and emotions are not something that should affect trade decisions, but the same can be said about holding forever spproach. Selling when the price starts do drop is often a wise move.

That's true we invest basically to earn more returns from our investments, and it's also our main aim to recover our investment first and then allow the investment for sometime so that we can gain some good profits form it. I agree that there are many good books that can be helpful in learning the concepts of trading. Investment is a way to earn good returns but only practiced by few people who know the art very well.


That's as true as the sourness of lemon water, and still a very believable thing. Many people still hold the ancient beliefs and thus invest in gold as that is a resource with limited quantity, and is considered as precious. Many people who invested in gold are among the group of rich people in a society and that's a fact.


I agree that Bitcoin is something more special for the investors than gold or anything else, but still I disagree that it can protect the value of a fiat currency. Bitcoin has nothing to do with fiat they are controlled by governments and banks, and in that case Bitcoin can work as an asset for those who might convert their fiat to Bitcoin. Other than that Bitcoin won't help to save any fiat currency from inflation or devaluation.

Bitcoin is a type of cryptocurrency, making crypto an umbrella name for blockchain digital assets, not a different name for Bitcoin.
Also, Bitcoin does not protect the value of dust currency, it protects the value of your money. If you buy Bitcoin, that's your definition of money and it is resistant to inflation, it does not help stop inflation in fiat.

Anyone with understanding of Bitcoin and how volatility works would not panic when the price drops. Those who lack the knowledge of the basics and are only into it for a quick profit would.

First of all, Bitcoin isn't created with the intention of being used as an investment just we are using it in that way because we realised the Fiat is losing its value whereas the crypto is growing and keep growing so it lead to the big players to enter into the market and now its stand as a good asset for long term investments.

Not everyone aware of Fiat is losing its value even now then why they would be saving money in their bank accounts so only few managed to get and made lots of money and let the others to sit in the middle class people to keep chasing the money forever.

I do not understand why everyone insists on adopting a single definition of Bitcoin in terms of being an investment tool and overlooking the fact that Bitcoin is a means of payment.  The definition of bitcoin is not limited to being just a currency that performs investment purposes, and for this we only see attempts to employ it in a specific way in order to achieve profits. 
Most of the topics raised in Bitcoin discussions are not interested in employing Bitcoin technology in business, which will help achieve profits in a different way.

Gold has traditionally been viewed as an important form of investment.  It is considered a safe haven, as its value tends to remain stable or even increase during periods of economic instability or financial crises.  Physical gold, such as gold bars or coins, is still considered a safe form of investment by many people, despite the advent of digital gold investment platforms.

So despite the fact that fiat currencies were once tied to gold now they are not anymore and people have forgotten this very important part and instead of rebelling they trusted the lies of governments and accept paper which is good for a**

wrong
those that dont understand basic economic of investing panic.
those that dont understand bitcoin panic

basically its the newbie that panic not the experienced investor of bitcoin

what is wrong is that inexperienced people can easily invest, more so now then newbies decades ago..even without the knowledge/expertise. which then rips at their emotions because they are not sure what to do due to lack of experience.

.. decades ago people needed to contact investment companies/portfolio managers and use their expertise to invest. now people can self manage investments. and if you dont have the knowledge/expertise then you get emotional

The real situation here is that e everyone want this change in the way of their financial economy and I've heard about bitcoin, they are interested in it and want to invest, but only few were ready to learn how to go about before starting, this is the basic reason why there are so many investors loosing their investment at the end because they lack what it takes to withstand any challenge through this, some also fall into investing on shitcoins at the course, while some may get scammed, all because they lafk the basic information need right before they started.

Investment is a form of investment activity with the aim of being able to take back money and hope for profits. There are many other understandings of investment that are found in various books and articles.
Investment is like a trend that is most in demand by various groups of human resource groups of various age groups.

In the past, long before technological sophistication like today, gold was the type of investment that was most in demand by various groups of human resources of various age groups and gold investment is still ongoing today.
A compelling reason to invest in gold is to maintain a hedge against fiat currencies that can change in value at any time and become a strong midset.
They continue to save and will not sell (hold) as long as there is no urgent need.

Gold is a natural resource that is processed by humans in various stages.
In the all-digital era, people still have the confidence to buy physical gold even though there are already many gold investment sites digitally.

The birth of Bitcoin, which is known as crypto in the digital era, can be used as a new type of investment in an effort to protect the value of fiat currency which can change or even be worthless.

In conclusion, the level of people's trust in fiat from ancient times to very low. People are willing to work hard to earn fiat currency and convert into this type of investment.
Those who understand Bitcoin, including its volatility and choose to invest in Bitcoin, are very easy to panic about the price, even though Bitcoin has been proven to be a future investment choice. There must be something wrong with them.