It is strange to trade something that doesn’t exist in a material world. And not only trade, but also pay for services and goods.


Exactly because it feels weird and because it’s difficult to understand, you may hear claims like: 

 

- It’s an asset that creates nothing! (Warren Buffett on CNBC)
- It’s a scam!
- It will crash down and you will lose your money!

One of those three claims is completely true. Let’s see which one!

 

1. “Bitcoin Is An Asset That Creates Nothing” (Warren Buffett, in an interview on CNBC.

This one is only partially true. Just like gold, says Buffett, Bitcoin creates nothing.

Perhaps gold (today) creates nothing. If he were talking from a historian’s point of view, he would say that gold was crucial for creating entire monetary systems and therefore helped create our civilization as we know it today. It is safe to say that gold is one of the most important materials in the history of the modern world (Modern used in a loose way, meaning the last six thousand years).

Image Credit: CNBC (https://www.cnbc.com)

 

Just as gold has shaped the economy of entire civilizations, Bitcoin might influence the economy of this century.

Buffett is far from the truth when he says that Bitcoin creates nothing. Maybe nothing in terms of stable investments, but Bitcoin and Bitcoin-related technologies created so many companies, and countless businesses are made possible because of it. It will always at least be remembered as a pioneer project for cryptocurrencies.

 

 

2. “It’s a scam!”


This one can be heard all the time on the internet. There’s a possibility that Bitcoin is a scam, in some way. It might be some government’s attempt to better track funds and make citizens pay taxes. (Note that Bitcoin’s transactions are by default public and transparent).



It might be the case that famous Satoshi Nakamoto is, let’s say, waiting for Bitcoin to hit $30k and then dump everything they have.

But the same could be said about every publicly traded company.

Is there a possibility of losing all of your money by investing in Bitcoin? Absolutely, there is a possibility.

Is it the most probable outcome? Nothing lasts forever, but Bitcoin absolutely crashing in the very near future is not the most likely scenario.

 

 

3. Bitcoin’s value will drop significantly


This one is true - it is inevitable that Bitcoin will lose its value. But that statement is so vague and general and it can be applied to anything. The question is - when will it happen? In a month, a year, ten, twenty years? The truth is - nobody knows. New technologies emerge every day, and Bitcoin might crash because of some other, more superior cryptocurrency very soon, but it might as well rise to 1M per BTC and stay that way for years. No one can really know.

But instead of investing in things that are trending, you should learn about all the industries and invest in the best thing there is. You might even come to the conclusion that Bitcoin is the best thing to invest in, but do your research, don’t just invest in trendy buzzwords. There are great projects built on top of similar technologies Bitcoin uses, that create more extrinsic value than Bitcoin does.

 

The rule that you “shouldn’t invest anything in Bitcoin that you’re not willing to lose” is a really good one. But why should you be risking losing anything?

There’s a way to profit from Bitcoin, but also have a form of a safety-net to limit your losses - trading. Trading is, oversimplified, buying when the price is low and you expect it to rise, to sell it for a profit.

Good traders know how to time the market. And in the end - they always profit. To them, Bitcoin is a trading asset just like any other, and by trading it smart they can earn, even when the price is falling.

But becoming a good trader is a difficult task, and that’s where Crypto Denada can help you. Crypto Denada offers you a possibility to follow those experienced traders and copy their trades on Binance and Bitfinex (more coming soon, check the platform as it may already be there!).

 

May the market be with you, and see you on Denada!

Don’t forget to take advantage of our reward system, make sure to check it out! Hurry up, it won’t last forever!

Happy trading!

########################################################################################

Follow us on social media!

########################################################################################
©Crypto Denada, 2019
Author: Adam Radivojevic, Denada Marketing Dept. , CEO of Futuristicon