The Real Cryptocurrency
Recently Bitcoin has been taking tons of spotlight in the news because of its soaring value. If you’re someone who is into investing money and loves to see money grow then you may have been tempted into investing in this cryptocurrency.
I was curious about Bitcoin as well although I’ve always known that it is not entirely a reliable currency. My skepticism about this currency was further enhanced after I watched a few YouTube videos by Dave Ramsey explaining the volatility and unpredictability of Bitcoin and other cryptocurrencies.
Because this currency is not regulated by any country or bank authority, the basic truth, that cannot be ignored, is that it does not bear any trust. Although the concept of digital currency does have a great appeal and is a wonderful mechanism to make transactions all over the world more seamless, unless there is a reliable backing behind such currency, it doesn’t stand ground as a sound investment strategy for the long-term.
If you’re like me who is in the investing game for the long-term and doesn’t believe in taking shortcuts to make easy money and instant gratification, then Bitcoin and other cryptocurrencies are not the way to go.
Warren Buffett, the Omaha of Nebraska and the billionaire investment guru, has publicly declared that he is not investing in Bitcoin and that says a lot about cryptocurrency as an investment tool. In an interview in 2014, Warren Buffett warned everyone about Bitcoin and asked to stay away from it. He said: “It’s a mirage basically. The idea that it has some huge intrinsic value is just a joke, in my view.” To paraphrase another of his comments in 2014, he remarked that Bitcoin is not a real currency and he wouldn’t be surprised if it’s not around in 10 years.
In a recent event this year, Buffet said: “You can’t value bitcoin because it’s not a value-producing asset.” Looking at Bitcoin and other cryptocurrencies through his wise investor lens, he added that it wasn’t possible to determine how high it will trade for and that there’s “a real bubble in that sort of thing.”
Buffet still advises investing in S&P 500 low-cost index funds as a reliable long-term investment strategy in spite of the omnipresence of cryptocurrency and its soaring value because it ‘makes the most practical sense’.
Another problem with Bitcoin is the fact that it is not hard money or cash. In his article titled, ‘Don’t Like It One “Bit”’, Dave Ramsey says: “There is nothing like cash. It is simple, people know what it is and how it works, it’s been around for centuries, and it has an identifiable value. Among Bitcoin’s problems is one that is similar to credit cards—when you don’t spend with cash, purchases often don’t register with you and you end up overspending.”
Thus, in essence, because there is no physical exchange, when we use Bitcoin or any other cryptocurrency, there is a higher chance of overspending in goods and services without any pain, remorse or guilt.
When it comes to effective investing, I personally believe there is only one cryptocurrency that can prove to be your best investment ever and give you the highest returns year after year, and that is… your digital library.
We are living in a wonderful era where we have a wealth of knowledge in the form of books, audiobooks and other educational programs available to us in our fingertips, both literally and metaphorically, at a fairly low price to pay. Today, we are able to store thousands of bits of useful information and have an instant access to them through a device that fits in our pocket. Isn’t it magical?
If you’re really itching to spend money on investments and if you have not already I would highly suggest you to direct the funds that you’re thinking of investing in Bitcoin towards buying digital books, audiobooks as well as educational programs and useful subscriptions that can have a life-changing effect on you.
If you want our financial future to be unshakable and stable, then Bitcoin is not a secure choice. No matter how much the market raves about Bitcoin or how many people think you’re stupid for not investing in it, don’t go with the herd. Instead, make worthwhile investments that you know will give you good returns in the future.
There is no point in being reckless with your hard-earning money and investing in a hypothetical currency. Sure, it may be a good strategy for ephemeral transactions and exchange of goods and services for a few days, weeks or months if you are having limited options, but in the long term, you are jeopardizing your financial future.
When you focus on investing in the real cryptocurrency, that is, building your digital library and unlocking and deciphering the useful knowledge and infinite wisdom from the greatest thinkers, influencers, and teachers that have ever existed on this planet, ultimately you’re investing in yourself and your personal growth, thus making the best investment you can ever make.
We can rely on the wise words of Warren Buffett: “Ultimately, there’s one investment that supersedes all others: Invest in yourself. Nobody can take away what you’ve got in yourself, and everybody has potential they haven’t used yet.”
No taxation, recession, inflation or fluctuation can ever take away this investment from you. You see, YOU are your best asset. So, if you have not already, get started with building your digital library and embark on the quest for knowledge and wisdom today!
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