After surging to more than $20,000 in 2017 some cryptocurrency traders began to speculate that the value of Bitcoin would reach $50,000 in 2018. This has not happened and the price of Bitcoin has in fact, declined 40% since the beginning of the year. If you had listened to these so called experts, you would have cost yourself thousands of dollars.
Bitcoin's loss of value can be attributed to its lack of intrinsic value. Bitcoin is not a productive asset and its price depends completely on whatever speculators are willing to pay for it, on any given day.
Billionaire investor Warren Buffett has already warned on the dangers of bitcoin, stating that he is almost certain things will come to a bad ending. In my view, organisations such as Twitter have moved to block ICO advertising to protect consumers from bitcoin mania, in addition to theft from hackers, who have stolen millions from ICO offerings.
My advice? Stick to the basics and invest in blue chip stocks over the long run, for a safe retirement Avoid the hype of Bitcoin and don't be tempted by get rich quick schemes – if it sounds too good to be true, it probably is.
