There are multiple reasons people get scared away from investing in Bitcoin and other cryptocurrencies. Everyone is different and fearful for different reasons but the reasons are all pretty common.
- Ignorance. Many people are ignorant about cryptocurrency and thus are scared to invest in it. Many people can’t even answer basic questions about cryptocurrency like “What is Bitcoin?” If you are ignorant about cryptocurrency you are wise NOT to invest. Always stay in your circle of competence when investing. However, that does not mean you shouldn’t make your circle of competence larger; you should check out OKEx to learn more about Bitcoin.
- Negative Press. Famous investors like Warren Buffet and large banks like JP Morgan have famously said negative things about cryptocurrencies like Bitcoin. When a renowned investor like Warren Buffet says negative things about an investment it means it’s a bad idea. Right? Not necessarily. Berkshire Hathaway didn’t buy Apple stock until 2016–2018 (very late to the game) and he has consistently said negative things about gold which is now up 40% this year. Warren Buffet knows his statements affect markets and rest assured he will only make a public statement that benefits him. Also keep in mind Warren Buffet and other big bankers (yes Warren owns a lot of stock in banks) have a lot to lose if Bitcoin and cryptocurrency replace the traditional banking system. Don’t just listen to the mainstream news and what famous men like Buffet say; do your own research.
- Legality. Bitcoin’s entry into fame came through the Silk Road, an online black market that used Bitcoin as it’s currency. Bitcoin has been tainted with a bad boy reputation and many people think Bitcoin’s sole purpose is illegal activity. Here is the best way to dispel this myth: a list of stores that accept Bitcoin as payment. Once you learn more about Bitcoin you will realize that it’s used for everyday things just like the any other currency. Also keep in mind that any and every currency is used for illegal activity. If you can’t buy Cocaine with a certain currency is it really money?
- Losses. People really have lost a lot of money on cryptocurrency and Bitcoin. If you bought at the top of the market in December 2017 and sold at the bottom in late 2018/early 2019 you would have lost 85% of the money you invested. However, Bitcoin has fully recovered in value since December 2017 and if history repeats itself will give Bitcoin buyers nice profits in 2021. Also keep in mind that people have taken huge losses in traditional markets as well. We all know someone who lost money in the stock market and real estate industry.
What is the cure for getting over fear? Education.