No, Gordon Gekko is not really selling his Bitcoin anytime soon. He was just playing with Bud. Gordon probably read it in the mainstream media news report that Bitcoin has further gone sinking in its value and is grappled by FUD [Fear, Uncertainty and Doubt]. Something like this:
FUD is something which is looming large in India. A certain section of people acting as Bitcoin specialists in the media aren’t able to provide the right information on the cryptocurrency or the Blockchain. On a off site trip, we heard it on the street “Uncle Bitcoin liya kya, dus lakh ka hone waala hai jald hi” – while the intent to get quick rich is understandable but putting high hopes and expectations is certainly a pain point for the growth of Bitcoin in India as that is NOT the only reason to opt in. This reflects in the market too, something like this:
On one side is the unrealistic performance indicator, pat comes second as a retort “Is it backed by the government?”. And this is largely coming from people who are all very well read, middle aged professionals [in the age group of 30-40], are in the tax slab of 30% (the highest in India) when it comes to their annual earning capacity, are residing in metros, most of them are investing passively by Mutual Funds and a few actively with the help of their stock broker, yet they are fairly exposed to a video or an article about Bitcoin in the mainstream media (of course not getting the complete picture there).
It’s funny when you think this is the same strata of the society which:
- Do not want their kids to get educated in a government school or university. They would prefer private schools and colleges.
- Do not wish to get healthcare at government hospitals. They would prefer private medicare.
- Do not buy government subsidized apartments in metros. They’d rather purchase apartments made my private companies, a gated community of “likeminded” people [read: of the same socio economic class]
- Desist going to local municipality for work and would advance to pay bribes to save time, cause “time is money” is the often retort.
This and many more habits’ highlight our behaviour towards government provided facilities and services yet we ask for a government backed currency! Did we forget what Demonetisation did to all us where in we lost the Right to Financial Freedom? Look at this frequent sighting in India:
While the aforementioned point is a social and psychological construct of our day-to-day lives, let’s observe the spending pattern of Indians.
The spending pattern does not reflect the investing habit of Indians in general as most of us (largely the middle class) are busy securing their food, fuel, clothing and education! This can be classic case of a developing country but this is largely because of the currency which faces inflation every year. The purchasing power of the Rupee is on a downfall at a fast rate, which one or the other way mirrors our high spends on utilitarian purposes cause the cost of the goods are rising more than proportionally to the rate of inflation! Look at how we are faring against the dollar.
Meanwhile look at the dollar against Bitcoin where Bitcoin proves to be deflationary in nature:
WHY GOVERNMENT WON’T RESCUE BITCOIN
Cause they need to rescue the banks first!
Our social structures are so complex that we rarely indulge in fair and open communication in families. Due to hierarchy of social constructs due to age or societal status, most of us feel intimidated to speak our mind as we live under the fear of getting rejected, admonished or embarrassed. And this is the single largest plague that’s ailing our society leaving aside the fact of indulging in monetary concepts or challenging the status quo at home itself!
This chart might be a little dated (just a month old) and at the time of publishing this article 1BTC~$4717.
SLAYING THE BUBBLE
Bitcoin can’t be described as a bubble when its price surge is being addressed in every regional market & it has a $2 billion daily volume.
Cryptocurrencies are the most volatile and most risky assets which the world has ever known. Two secrets of winning it big in Crypto world:
- Commit yourself to becoming an expert in all aspects of cryptocurrency (mining, fundamental & technical analysis, etc.)
- Only invest what you can afford to lose, and be okay with the fact that you might lose it all
Introduced to Bitcoin recently, here are two memes for you:
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