Reasons Why You Should Not Make Debt to Buy Bitcoin
Many people in South Africa are making debt to buy, or have already bought bitcoin, along with multiple other coins that are sparking interest in the market.
For most people, thinking about Bitcoin now is a thought that they’d instead like to remove from their minds completely, thanks to the “crash” in the crypto-trading world, with Bitcoin experiencing one of its biggest drops on the market in 2018 than ever before.
Even though most people are coming to terms with the fact that Bitcoin is no longer worth investing in, there are still many who believe the coin will recover and continues to invest money into it, which causes them to lose even more money.
For those who made debt to buy BTC, has resulted in pure catastrophe, as they only based their investment on the idea of making money quickly, rather than thinking about what could go wrong.
What caught people the most, is making purchases with specifically, their credit cards, which only resulted in a gamble-like addiction that cost them thousands of Rands. Some individuals have even spent their life savings on BTC, and have lost everything, which was reported as some of the worst mistakes made during the hype of the cryptocurrency market.
Why You Should Not Invest in Bitcoin
You don’t understand it and should not be investing in something you don’t understand in the first place.
When you’re scrolling through Facebook, Google, Instagram, or whatever it is online, adds and recommendations to easily purchase Bitcoin or “get started without knowing anything,” tends to pop up a lot. These adds are very dangerous because it is making people think that they can easily make money, without knowing what they’re doing. If they make debt to trade with it, that’s the number one way to lose their money, which leaves people from all countries, all over the world, seeking help from debt counseling/ consolidation agencies, all while adding to an even bigger problem for their country and not only themselves.
Bitcoin is extremely volatile
If you understand the algorithms used in trading, great, but even though you understand it, the entire market around cryptocurrency is very unstable, which means anything can happen.
The fact that any person can log onto the internet and create their cryptocurrency is yet another example of why it’s a gamble. You never know what’s legit, and what’s not.
The risk might affect you for life
Considering that there are people who made thousands of Rands of debt, is a crazy idea all on its own. Making debt to invest in anything is an incredibly big risk and should be treated with a lot of care.