Why Bitcoin is a Bad Investment
Bitcoin is no longer a good investment – Litecoin Foundation co-founder
Blockchain technology is still attractive, unlike bitcoin
Volatility makes a crypto asset unsuitable for investment
A young industry still needs stability and security
Xinxi Wang, co-founder and director of the Litecoin Foundation, claims that bitcoin was originally a great technology and also a good investment, but now that has changed..
Investing in this coin is no longer as profitable as it used to be. In particular, Xinxi Wang, co-founder and director of the Litecoin Foundation, believes that Bitcoin has become a much more risky investment..
Bitcoin was a great investment and cool technology. Now I still like technology, but investing is no longer so profitable. The risks are too high. TQQQ has grown fifty times over the past ten years at minimal pullbacks, he tweeted.
TQQQ is the ticker for the ProShares UltraPro QQQ exchange-traded fund, which is listed on the NASDAQ.
At the time of this writing, they are trading at $ 114.92 with over 77% annual gain. Bitcoin (BTC) settled at $ 11,250, while over the past 12 months, the cryptocurrency has risen in price by only 3.5%.
Volatility and Risks – Companions of Bitcoin Investments
Wang holds a Ph.D. in Information Technology.
He has long supported and promoted the benefits of blockchain technology. He is currently the Co-Founder and Director of the Coinut Exchange and the Co-Founder and Director of the Litecoin Foundation..
Based on his tweets, he has always been skeptical about claims that bitcoin is a defensive asset in times of crisis. Digital coins are once again on everyone’s lips, and the growing user base confirms the success and explosive growth of the industry over the past decade. However, investing in bitcoin to earn or retain capital is still risky..
The price of this asset is very volatile, and the industry itself is still very young and populated by scammers and hackers.. Previously edited by BeInCrypto reported that hackers managed to steal 1 million addresses from cryptocurrency wallet manufacturer Ledger.
Bitcoin roller coaster
Over the weekend, Bitcoin soared above the $ 12,000 level, and then in a matter of minutes lost more than 12% of its value and collapsed below the $ 11,000 mark. A possible reason for sharp price fluctuations is associated with the liquidation of margin positions on futures and options contracts.
Average daily bitcoin trading volume also grew by more than 50% in a few hours and reached 52 billion dollars and just as quickly returned to previous values.
It is quite obvious that BTC is subject to high volatility and, consequently, unpredictability. Its price can suddenly collapse at any moment, and then suddenly rise rapidly, which makes it of little use as an investment instrument.
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