Investing in crypto-currencies is one of the most talked about topics in the world right now. Many people are with this new invention and are spending more and more every day to enlarge their portfolios. However, not many people were not enthusiastic about this new “big thing,” some people don’t even know what crypto is, and many others know the terms like “crypto” and “Bitcoin” because of the fuss back in 2017. However, whether they know it or not, many investors and other people were against the idea of investing in online currency or are afraid of investing in them.
Fear of the market:
Fear is one of the factors, which prevents someone to take an action towards something. During the rise of Bitcoin back in 2017, many people got more into the crypto world; they started to learn about ICOs, blockchain and other crypto stuff. However, they were soon discouraged, when the market began to turn down. Not too many people invested in bitcoin when it first came out in 2009, but people started to spend more in 2017 and the rapid fall of the prices, made the investors lose their money. And because these loses were not a secret to the whole world, other people were backed off the crypto market.
When a country accepts a regulation whether to allow or prohibit something, the whole name of that product changes, its price changes, legality terms changes and so on. The same thing happens in the crypto-market, for example, China is one of the big countries that have banned crypto entirely, in China, crypto-exchanges are prohibited. And when this rule was first accepted by the Chinese government, it affected the prices. Russia is yet another country that has banned crypto as a way of payment. So, when people see that these vast countries are banning this one thing, they become more afraid of the investment, because banning the crypto is directly connected to the prices of the currencies.
Everyone double thinks their choices, when they are investing into an asset, and when this investment is going into a product that is new to the market, and nobody understands it, we become more hesitant. Because, the understanding of blockchain has not gotten to a lot of people, and they do not know how the securities work for the crypto-currencies, they think that hackers can easily hack your account and take your portfolios.
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Crypto distrust: Why Some People Refuse To Invest In Cryptocurrencies was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.