Following the fake news of Bitcoin ETF approval by Cointelegraph yesterday that made Bitcoin price surge to around $30k, there was someone that jumped into the market with with over $600k only to realize it was a fake news and the market started dumping and quickly sold. Do you now that within 10 minutes he lost over $49k. These are the people that Bitcoin is risky for... they want quick profit.
This is the type of investor who only targets news to accumulate Bitcoin and there are only two risks, namely if the news is fake then he will lose because the price will immediately fall but if the news is true then he will profit from the price increase. That's what is happening currently in the market, they can make quick losses and quick profits. But I don't really like following the style of buying instantly just for quick profits because it carries a greater risk to what we have planned.
I am more interested in accumulating gradually rather than aggressively because those of us who buy regularly will be more profitable at the level of buying at low prices compared to those who only refer to instant purchases when there is news. But if the buyer does not sell it immediately then he only loses in the fiat estimation, not in his Bitcoin ownership. And he can hold his Bitcoin holdings while waiting for the price to rise again.
The is true definition of gambling... expensive gambling for that matter because the pain came very fast, just within 10 minutes. Imagine investing that amount when Bitcoin dumped to the $16k region and holding it till now, that would have been a massive win for him. Unfortunately he want it so fast and it ended in tears. probably he is busy now spreading all kinds of FUD about Bitcoin as a way of venting his anger. Well, the market have a way of humbling anyone that want to beat the process of growth.
People forget that most of the Bitcoin millionaires are people who held for long... the time factor must be a constant to be able to maximize the opportunities offered by Bitcoin because there is no shortcut.
Most of the Bitcoin millionaires are true believers. Some are rich individuals who have no clue about Bitcoin. If Bitcoin is fundamentally superior as a store value, they will consider purchasing it as an investment, at the very least. To the rich individuals, a price of $28,000 for one Bitcoin is no big deal. They are simply uninformed yet they will still buy and hold it for a very long time till they become multimillionaire. As long as you a true believer rich/average, without fear on your investment stacking holding your Bitcoin can will lead to massive gains so when is time tell yourself you've worked hard for it and you deserve it.
Well, being clueless also has some disadvantages as you don't know what is actually going on in the market. For higher advantage its best you have knowledge about Bitcoin and still be a true believer, this will enable you to patiently hold long for the future. Anyone who do not have any clue about how Bitcoin works would be completely mistaken to think it's a short term hedge. It's a volatile asset and its difficult to predict. Long run - then for sure.