Is Holding Crypto A Good Move? [Perspective from Some Financial Experts 2022]
Is it wise to invest in cryptocurrency? This question is something that one cannot answer solely by evaluating a single viewpoint. It may be necessary to solicit multiple perspectives from crypto professionals with relevant experience and understanding. In light of this, let us consider what crypto experts have to say about the future of cryptocurrency, which may provide us with a new perspective on how we should approach holding bitcoin.
Jeff Booth is a technological leader, strategic advisor, and entrepreneur. He’s a prominent figure in the Bitcoin community. According to him, Experts believe that cryptocurrency will be the money in the future. However, he thinks that it is, even superior to cash. Cryptocurrency reduces the cost of goods, which goes against the current system’s tendency to raise prices. As a result, he believes that the only answer to this problem is a systemic shift that will bring humanity abundance. It will allow humans to go from one system to another.
Bitcoin might be a solution to excess in money and scarcity everywhere else or lack in cash and overabundance everywhere else. Against an inflationary system, creating money out of thin air concentrates the government’s power. It needs to centralize authority more and more systematically. And history has shown that centralizing all control in government is harmful to humanity.
In other words, in an economy based on debt and inflation, Jeff believes we should take advantage of technology’s deflationary tendency, embrace it, and use it to create a prosperous and hopeful future. He believes that Bitcoin can aid in this transition, so it is a good reason to hold or start acquiring Bitcoins today.
About acquiring Bitcoins, know that you can do it in two ways. The first is through direct trading on exchanges. The second is by using brokers, which you can access through trader-broker connecting platforms like BitPanda. Another popular platform for investing in cryptocurrencies is Pattern Trader. This is also shown in the Pattern Trader review done by one of the reputable crypto media experts at Cryptona. According to the research, the site is not only safe and legal but also appropriate for beginners.
Bitcoin’s price in January 2019 was 32,000, according to Statista, and peaked at 60,000 in October 2021. Then it dropped to between 28,000 and 30,000, the most recent low. In an interview with Robert Kiyosaki, Anthony Pompliano, one of the most renowned crypto investors today, shares his firsthand insight into how people in the market feel during such times.
People see it as a great degree of volatility that is terrifying. However, one of the advantages of this decentralized digital open system is that anyone can check the blockchain to see who is buying and selling. As a result, it’s an open and transparent ledger.
When you look at those on-chain measures or the blockchain, you’ll notice that the whole reduction in the market from 60k to 30k is due to all-new investors or new people in the market buying from old market participants holding coins. So, if we can notice that new people are selling, we might wonder who is buying it.
It includes everyone who has been around for a long time. Newbie traders are taken advantage of by experienced traders who get startled when the market is volatile. They purchase bitcoin at a reduced cost. So what’s going on is weekend sales to strong hands or new people selling to old individuals who’ve been in the market for a long time.
To put it another way, it’s a mistake to believe that cryptocurrency volatility makes holding crypto a terrible choice. It is crucial to understand that one of the main reasons for crypto volatility is the back-and-forth coin exchange of old and new market participants. Volatility is not an indicator that your crypto goes away. It stays in the system, and the market participants are one of those factors that keep the price moving.
In an interview with Robert Kiyosaki’s podcast, Tom Wheelwright, a Rich Dad Advisor on Taxes, said that US individuals should prepare for some changes in filing taxes this year. He claims that it is taxable when someone uses or trades their virtual currency. If one did anything other than buy it, Tom says they have to declare it; if they don’t, it’s a felony.
Assume you have an ordinary transaction. You are off to the supermarket. It would be taxable if you bought a good in the supermarket with bitcoin because it would be deemed a bitcoin to dollar exchange. Thus, it is taxable every time you buy and sell bitcoin using dollars.
In the United States, there is now a box on the tax return that a person must check to confirm if they used bitcoin to trade other than simply buying it. They do not need to mark that box if they purchase it. However, they must label it for any other purpose. If they fail to keep it, it is a felony, not just a civil penalty. Civil punishment is one that a person must just pay and then move on. This time, however, not so. It is a felony for individuals who fail to report such instances.
This could imply that individuals should begin holding bitcoin now for it to become a mainstream currency independent of fiat money. When bitcoin becomes a widespread currency, such fines will no longer be a threat because one is transacting with another using the same coin, cryptocurrency.
Also read: How to Choose Best Cryptocurrency Software
Robert Kiyosaki is a respected financial advisor who wrote the famous Rich Dad book series. According to Robert Kiyosaki, cryptocurrency will eventually crash, but it is currently on the increase thanks to people like him who oppose the federal reserve. One of the biggest reasons Bitcoin will inevitably fail is the Federal Reserve.
It’s mainly because Bitcoin’s technology challenges the government and banks’ established systems. As new technology arises, the older one faces extinction. Whoever influences money has control over power. And so, if the government loses control of cash, it risks losing power. As a result, financial professionals like Robert support cryptocurrency. People will keep and trade cryptocurrency as long as people like Kiyosaki believe in its power.
To Sum it Up
In investing, we should always look not only at the present but at the future that awaits. As an investor, be on the lookout for crypto experts about what they can say regarding cryptocurrency since they have experience and knowledge about the industry that an ordinary trader does not have. And from that, as a thinking individual, make up your mind whether you will believe it or set it as your starting guiding principle to make your view of what the future brings for the cryptocurrency.