What’s More Volatile: Bitcoin’s Price, or the Opinions on it?
In the crypto world, we’ve made ourselves a fantastic community. We’re traders, we’re hodlers, we’re investors, speculators, thought leaders, interested bystanders, critics, amateurs, and professionals. We have our own trends, our own lingo, our scandals, and our celebrities. But one thing I’ve noticed is that, like other communities, we’re vulnerable to putting an unnecessary amount of value to the opinions of public figures.
If you’re like us, you are getting pretty tired of hearing the same old criticism of cryptocurrencies from high-profile figures in the finance world. “It’s too new” or “too volatile” or “too risky” or something else dismissive and fearful.
There are just as many loud voices with wide platforms who are strongly in favour of Bitcoin and other crypto coins! Mark Cuban and, of course, Elon Musk are prime examples.
While there’s absolutely emotional payoff from participating in the fan bases for these public figures, it’s critical to remember that the financial payoff is more valuable long term.
For example, let’s take a look at what Scott Minerd, CIO of Guggenheim Investments, has had to say about Bitcoin over the last couple of months.
Do you see the same thing we do? Yeah, looks like the opinions being stated are notably more volatile than Bitcoin is.
Look, we’re not trying to say don’t follow or listen to high profile persons at all, but we are trying to point out that the original purpose in establishing a decentralized currency was to have a system of value that was based on proofs rather than potentially fallible entities. So the next time you see a provocative opinion from a public figure regarding crypto, add some metaphorical salt grains and check the facts before FOMOing in (or out).
