The amazing performance of Bitcoin since 2010 has left many investors wishing they had gotten involved and others wondering if they should. The cyber currency has been nothing short of amazing as $1000 dollars invested in 2010 would have returned $90 million in 2017. At the end of 2017, Bitcoin reached a phenomenal record price of just under $20 000 before it came tumbling down. During 2018 it hovered at around the $3000 level and just recently it has shown signs of moving upward sharply.

Have we learned anything from Bitcoin? Are we going to make the same mistakes again?

Here are 3 reasons why you should not get involved with Bitcoin.

If you don’t understand what Bitcoin is
It’s too easy to get lulled into an investment through hype and speculation taking a chance not clearly understanding what you are doing. Bitcoin is very technical and takes a lot to get your head around. As it is a very new concept it needs a lot of research before getting involved.
If you think Bitcoin will increase as it has in the past
The outstanding return in value has no guarantee of continuing to follow the principle that past performance is not an indicator of the future. Sure there are many reasons given as to why it is a no-brainer, however, you need to be astute enough to understand that markets do not go up in straight lines. As more cyber currencies launch (so far there are 876) the market will have more choices and Bitcoin’s dominance could diminish.

If you don’t have funds you can afford to lose
The risks are extremely high. You rely on the speculative bet that all the hype placed on Bitcoin will play out. It defies conventional thinking as there is no tangible asset. Just an amount in a wallet which moves up and down in value in cyberspace. The graph shows how these movements can swing in the short space of one week. So, if you are using must-have money which you can ill afford to lose you are asking for trouble.
Whilst Bitcoin is less conventional, the conventional approach still applies. If it sounds too good to be true then it probably is. So be wary and do your homework and find out as much as you can before getting involved.