Cryptocurrency Craze and Fear of Missing Out

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Cryptocurrency Craze and Fear of Missing Out

A close friend confided to me once, that in most cases, by the time one gets to learn of an opportunity, there is a high chance that they are already late. Critically analyzing the statement, it applies to most people and many opportunities that we come across each day. The issue isn’t with the opportunities per se, but has all to do with the fear of missing out, popularly abbreviated FOMO. Opportunities “knock” on our doors every day and it’s only a matter of developing the wisdom to know what suits an individual or vice versa. Saving other examples for another day, let’s look at digital currency.

Digital Currency, aka cryptocurrency was little known in the last decade. Thanks to the most popular and the pioneer of the space, Bitcoin that is believed to have come into existence sometime in 2009. Believed to be the currency of the future, defying traditional national currencies currently available, more like precious metals, such as gold, that know no national borders when it comes to matters trade. Over the years, the number of crypto currencies have been on the exponential rise due to the ever increasing demand. Today, there are over 1500 crypto-currencies… and counting.

Many of these cryptos implement the block-chain technology. A technology that relies on peer to peer verification and carrying out of transactions in a nutshell. In as much as the technology could be applied in many disciplines, it determines how many of these currencies could be in existence. Popular crypto today include Ethereum, Litecoin, ZCash and Dash all of which are valued for not less than $50 each. One can own cryptocurrency either by “mining”, which is “creating” or buying at the value at the time of purchase.

The craze of cryptocurrencies hit fever pitch toward end of 2017 when Bitcoin hit an all-time high value of $19,000. Many people looked to cash in on the Bitcoin as it was mooted to sky rocket till a value of $100,000. Since no one minds being an overnight millionaire and with little effort, scores still regret to date of their decisions to get involved as the currency has never gone past the $20,000 mark. In fact, the current value is almost one quarter of the all-time high.

Every market having its own mad man, there are a huge number of “companies” who accept deposits from individuals promising them extraordinary returns using “mining” and “trading” of the cryptocurrencies by their “experts”. Even as rumors of big banks and powerful governments having investments in crypto-currencies abound, I sincerely advice against involving oneself in these types of “companies”, at least doing some due diligence on their business model first or risking not more than you could afford to lose. We offer advisory on financial matters as we do care for you and your company’s prosperity. Keep in mind that we understand Kenya’s taxation laws, too.

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