South Africa: The Financial Wellness Coach – Fight Fomo When Thinking About Bitcoin
Question: Some of my friends made a lot of money investing in Bitcoin. Should i invest in it?
First published in the weekly Daily Maverick 168.
Answer: If you had invested R100,000 in Bitcoin a year ago, it would be worth more than R500,000. If you go to a social event, you will hear people talking behind their masks about someone who made a fortune with Bitcoin. This can create a fear of missing out (FOMO).
The question for me as a financial advisor is whether I should include Bitcoin in my financial recommendations.
I’ve attended countless webinars, listened to podcasts, and read many articles about Bitcoin, blockchain, and cryptocurrencies and still can’t speak to any real authority on the subject. However, with this health warning, I am going to share my thoughts on what to consider when making a decision.
Cryptocurrencies exist in the digital world and control is administered by a wide network of people using what is known as a blockchain. (I know I’m over-simplifying things here.)
Cryptocurrencies are attractive because:
You are independent of countries. Sending money from one country to another is very easy and cheap.
The supply of currency is …