South Africa: The Financial Wellness Coach - Fight Fomo When Thinking About Bitcoin


Question: A number of my friends have made a lot of money by investing in Bitcoin. Should I invest in it?

First published in the Daily Maverick 168 weekly newspaper.

Answer: If you invested R100,000 in Bitcoin a year ago, it would be worth more than R500,000. Go to any social gathering and you'll hear people, behind their masks, talking about someone who has made a fortune with Bitcoin. This can create a Fear of Missing Out (FOMO).

The question for me as a financial adviser is whether I should be including Bitcoin as part of my financial recommendations.

I have attended innumerable webinars, listened to podcasts and read many articles on Bitcoin, blockchain and cryptocurrencies and still cannot speak with any real authority on the subject. With that health warning, I will, however, share my thoughts on what you should consider when making a decision.

Cryptocurrencies exist in the digital world and control is managed by a wide network of people using something called blockchain. (I know I am oversimplifying things here.)

Cryptocurrencies are attractive because:

They are independent of countries. Transferring money from one country to the next is very simple and cheap.

The supply of currency is...

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