The majority of the investors and traders have misconception on investments because they think that they will easily become successful by putting their hard earned money in bitcoin and other assets without understanding that it is just the foundation and they need to work really hard and follow the other steps to beat the market and able to have gains in their portfolio. Don't get me wrong guys because I really promote investing but majority do not understand how it works, they think that there will be a guaranteed profits oncethey put their hard earned money but in reality, it is very harsh because outcome is not guarantee which means that there are thousands of outcome that can happen and what we need to do is to be prepared on what ever situation will be. So what are the outcome? they incur losses. They do not understand the risks associated with the asset and if the rewards are worth it or not. I read a past research and they conclude that only few percentage of investor are consistently making money and majority of the investors keep losing their money because of lack of knowledge. It is the number 1 reason why investing doesn't guarantee you to be rich.
Investing our money is no guarantee to make us rich, I agree with that, but in my opinion it's the best option we have to try and get rich. There isn't many alternatives we can do with our money. The first approach would be to spend it all and not carry about our financial futures. This is the worst possible attitude and will never get us out of poverty. We could buy new clothes every month, buy the newest smart phone every year, go out to eat in restaurants multiple times a week, and so on. It's easy to spend all our money and don't save for the future. The second approach would be to save money regularly, but don't care about in what form we are saving. Leaving all our money in a savings account at the bank is the worst form of saving. We will never become rich this way, as the inflation will take away all the value of our money over time. The interest rate the bank bank offers us is below the inflation rate, we need to invest our money to make higher returns. Our last and only option is really to use our money and invest it in more promising opportunities. Better to invest and lose some money along the way, than to never invest our money at all and make no real returns.
You have a great point. Not only with bitcoin, we can invest in any sector, any asset, as long as we see the potential to increase in price and bring profit to us, then invest. That's much better than using that money for pleasures that don't bring us any other benefit or value. Things like nice clothes, delicious food, and expensive brands will leave us if we run out of money one day. So let's always look for ways to have more money, and investing is an excellent way for us.
Yes, investing does not guarantee we will be rich, investing is always risky, but if we do not invest and spend money on useless things, we will become poorer when we are old. When we are young, we can earn a lot of money, but in old age, if we are not prepared, we will pay the price for the wasteful spending caused by youth. But if we have good preparation, a savings, and an investment, then when we are old, we will have enough time to enjoy the rest of our days.