FOMO encryption crash? “I missed the Bitcoin bus, but now I feel my time has come. Is it time to go big or go home? “I have another 25 years in a boring 9-to-5 job, and I just want to leave.”

I read a letter from a reader last year who suffered from FOMO encryption and I have been following the cryptographic markets ever since. I felt like I missed the bus with Bitcoin, but now I feel like my time has come. Is it time to go big or go home?

I have another 25 years in a boring 9-to-5 job, and I just want to leave. Markets are flooded and there is talk of a recession. I sit here day after day doing the same old chores, and I want to have some hope that I can have an exit strategy.

Should I buy Bitcoin and Ethereum and keep them as an early escape or even as a retirement strategy? My 401 (k) is a shadow of what it was last year.

Can you please help?

Always on the sidelines

Dear Sides,

I vividly remember this letter. He wrote: “I am too old to sit down and I hope to make up for lost time by investing my little money safely and receiving 5% returns for the next 15 years.” And I replied: “If you want to deal with cryptography, but again at your own risk. The same goes for the stock market. “There are no guaranteed quick getaway programs.”

Nothing has changed. I understand your frustrations. You feel trapped and cryptocurrencies seem (or seem) like a good plan to get rich quick or get rich in the future. None of these prospects are possible, as you would have to risk a lot of money to fulfill this dream and end up losing your shirt, like many investors in encryption.

Of course, the key to any investment is to buy low and sell high. Encryption investor Josh Rager has did his own analysis in the recent highs and lows of Bitcoin and sees lows of $ 17,000, $ 14,000 and $ 11,000. He emphasizes that these are his own views based on previous bounces. “The stock market will have a big impact on what Bitcoin will do overall,” he warns.

“Years will pass from now, we hope in the next decade, where we will see Bitcoin move away from the stock market,” he said. Bottom line buying is easier said than done, especially with a volatile asset like Bitcoin. But he, like The Moneyist, does not give you financial advice or tell you to buy Any level. When it comes to encryption, like any investment, every man and every woman is for himself and herself.

“Given the volatility in cryptocurrency markets amid uncertainty about inflation and the prospect of recession, you can take advantage of 401 (k) long before you make any investment in cryptocurrencies.”

There are, of course, people who have climbed peaks and valleys and still believe that there is value in Bitcoin in the long run, such as this investor who believes that Bitcoin has long-term prospects of $ 250,000 and above, as a time will come. that there will be no more mining of the currency after reaching the ceiling of 21 million. Some estimate that this year will be 2140.

Regarding this limit of 21 million Bitcoin: “This is determined by the bitcoin source code programmed by its creator, Satoshi Nakamoto, and can not be changed. “Once all bitcoin is mined, the amount of coins in circulation will remain stable at that level permanently,” according to a Coinbase report.

“The rate at which new Bitcoin is being mined is set to slow over time,” the report said. “The reward for extracting each block of bitcoin – which is done every 10 minutes – is halved for every 210,000 blocks. This is about once every four years. By 2022, the reward per block had been reduced from the original reward of 50 BTC per block in 2009 to just 6.25 bitcoin.

Given the volatility in cryptocurrency markets amid uncertainty about inflation and the prospect of recession, you can take advantage of 401 (k) long before you make any investment in cryptocurrencies. In fact, cryptocurrency lending platform Celsius Networks LLC said on Sunday it was suspending all withdrawals, exchanges and transfers between accounts “due to extreme market conditions”.

Some economists, such as Peter Schiff, are big skeptics. He wrote on Twitter that with Bitcoin falling below core support at $ 25,000 and Ethereum below $ 1,300, the combined market cap of nearly 20,000 cryptocurrencies has broken below $ 1 trillion, from a record high of $ 3 trillion. trillions of dollars. “That’s $ 2 trillion down, $ 1 trillion left.” He wrote. “The last trillion will be the most painful.”

Charles Schwab, meanwhile, calls Bitcoin and other cryptocurrencies speculative investments. “We do not believe that Bitcoin fits into traditional asset sharing models right now, as it is neither a traditional commodity like gold nor a traditional currency,” the Schwab Center for Financial Research said in a blog post. “The dramatic volatility of bitcoin is mainly due to supply and demand and not to intrinsic value.”

See your 401 (k) long-term insurance for the next 25 years as a safe haven for your retirement. You can only occupy one room at a time, one day at a time and, hopefully, one concern at a time. Spending more than you can afford to lose in Bitcoin, letting your emotions control your finances and trying to gauge the market can lead to more frustration.

You want to go out now, but what if you get it? My best guess is that your fears and anxieties would find a new place to set up a store. Your work gives you structure, purpose and hopefully the kind of social interaction that makes us all feel like we are contributing something to the wider community. Be careful with exit strategies that look too good to be true.

Take a look at Moneyist’s private Facebook group, where we seek answers to the most thorny financial issues of life. My readers write with all kinds of dilemmas. Post your questions, tell me what you want to know more or think about the latest Moneyist columns.

Moneyist regrets not being able to answer questions individually.

By emailing your questions, you agree to be published anonymously on MarketWatch. By submitting your story to Dow Jones & Co., the publisher of MarketWatch, you understand and agree that we may use your story or versions thereof across all media and platforms, including third parties.

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