Here is the reason why i should buy Bitcoin( BTC) in 2022 .

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Introduction :

 In this article i am  going to answer the question does it make sense to buy bitcoin in 2022 if you still don't really know what bitcoin blockchain or other cryptocurrencies are we'll look at what's called crypto fomo whether the early returns are likely to be repeated and we'll see if there are any investment analogies about new technology that can help guide our perspective then we'll talk about how you might already have exposure to this space if you invest in index funds .

hey everyone my name is kartik and this blog  is for anyone who wants to learn more about personal finance investing in the world of money around us .


About Crypto Mofo :

Let's talk about crypto fomo it's hard to avoid hearing about bitcoin . And other cryptocurrencies because the headlines are everywhere and they're never boring one week it's someone who made millions by buying bitcoin early and the next it's a story of a dude who lost his password and with it 265 million dollars worth of bitcoin gone forever and these days it's rare if on your various social networks . 


You don't have exposure to at least one bitcoin maximalist a bitcoin maximalist believe that bitcoin is the only digital asset that will be needed in the future and that all other digital currencies are inferior to bitcoin they may be somewhat evangelical in their beliefs and one of the problems that i think a lot of people intuitively have is that they're just too many people who don't come across as credible and yet have outsized conviction that they know exactly how this all pans out and part of you wants to dismiss them because sometimes some of them will make statements that are fatally flawed from either an economic technological or even just a common sense perspective and part of you is still curious because you know it's possible for someone to have an incorrect understanding of something and still end up making money and them saying i told you so would just kill you on the other hand you'll find a lot of people who are quite intelligent and have decided to work in the space or invest or are very confident about crypto .


But don't come across as cheerleaders and you're intrigued but you just don't know enough about the space yourself to have a strong opinion one way or the other and then of course there's the advertising and marketing perhaps you've seen the matt damon commercial for crypto.com part of a 100 million dollar marketing campaign the tagline being that fortune favors the brave.


 And it includes a scene depicting a ship not unlike what you would have found explorers looking for the new world to have used i don't know if it's worth pointing out that the european colonization of the americas may have been responsible for killing 10 percent of the world's population but a lot of people normally die in matt damon a movie so i guess it's on brand couple all of that with the high returns that get highlighted from time to time.


Should You Buy Bitcoin :

 It has led to what is known as crypto fomo the fear of missing out so you are not alone the question for you is does it make sense to put your hard earned money into something that you may not know very much about because you are primarily attracted by the stories of people who hit it big and you wonder if that can happen for you too let's dive into that may 22nd 2010 is known as bitcoin pizza day because someone bought two papa john's pizzas for 10 000 bitcoins priced in us dollars that was 41 and those 10 000 bitcoin today at roughly 42 000 per coin translates to 420 million dollars so of course buying something valued at 0.4 cents and then seeing it go up to 42 000 is a huge return it's over a billion percent it would be 1 billion 49 million nine hundred and ninety nine thousand and nine hundred percent .

it's unlikely that we will see the same returns again just as a fun thought experiment if bitcoin continued to show that level of growth that would require one bitcoin getting to 882 billion dollars per coin that would put the market cap of bitcoin at just under 10 quintillion dollars mckinsey estimated that the balance sheet of the entire earth was 510 trillion dollars so that would put bitcoin's market cap at just under 20 000 times the world's current collective net worth most analysts would likely agree that this is too bullish 

And when i say likely what i really mean is that they would likely throw you off a balcony for even suggesting it now of course no one is actually suggesting that the future gain in the price of bitcoin will be anywhere near this level of growth and that's the point everyone agrees that the early spectacular returns are unlikely to be repeated it's also worth pointing out that very few people got those gains ask yourself at what point you would take your money out of an investment that was uncertain volatile and a little

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