Crypto Myth

 Bitcoin and other crypto-currencies in general are perceived as assets, currencies or both. They are computer managed ledger entries that can function as money if someone is ready to to value these as money and use them in transactions. Crypto-currencies inherently process no value, but are valued or bought at a high price. Some people believe that crypto-currencies might be advanced technical money which would be able to replace the currency notes.

People these days boasts about Bitcoin but their identity remains anonymous and with security. The use of Bitcoin involves it being used as a currency to purchase goods and services. It is similar to gold, the moment we give value to it, it adds up. So, basically if we don't value gold, it does not have any value in the market. For any currency to be a viable source of income, the primary requirement is that its value should be stable. Crypto has fall to more than 56% in the last six months.

There are several criminal activities traced, false informations and stolen Bitcoins. British economist Henry Dunning Macleod states that bad money will drive out good money. When you see someone making money out of crypto, you may have the urge to mimic the same and make some money, this is known as information cascade. Information cascade causes people to value the judgement and actions of others and contrast to their own. Crypto-currencies have now been advertised in many famous shows, matches, events etc. by bollywood stars whom people idolize. Investment opportunities in the short run must be avoided says George s Clason. Warren Buffet also states to avoid investment opportunities which you do not understand well.