Is PKT Cash Crypto A Bubble?
by Abdul Aziz Mondal Finance 18 February 2022
A lot of people seem to think that cryptocurrencies are a massive bubble. That’s what people thought about the internet before it revolutionized our lives. However, you can’t blame people with more conservative views about their opinion on a targeted niche.
Lots of people lived through the dot com and the housing bubble. They’re just wary of something that looks exactly like the things that happened in the past. When the dot com bubble imploded, more than 6 trillion dollars were wiped out of the economy. Click here to read more.
Then, not even a decade later, the household bubble wiped away more than 8 trillion dollars. The impact that these events have on people’s lives is immense. A shock like that could ruin your life if you invested your entire life savings.
Now, the main question is why do things like that still happen, and why don’t people learn their lessons. Also, most importantly, is the entire niche of cryptocurrencies a massive bubble? Stick around to find out.
Does greed have anything to do with it?
The easiest way to explain an economic burst is by blaming it on human nature, especially greed. It’s easy to say this because it carries a bit of truth in it, and everyone can understand it. But that’s too simple of an answer.
It’s a generalization of the entire field of economics. Here’s why. Most people make decisions based on a limited amount of information. Oftentimes, they don’t think logically about their actions, and the things they’re doing make sense at the time.
A couple of months later, they wouldn’t do the same activities. An interesting thing about overvalued assets in the economy is that they don’t work like cancer or a disease that can be treated. You can go to https://pktpal.com/ to read more. If there is a tumor inside of a body, a doctor can take a look at it, make a biopsy, and then see whether it’s benign or malign.
This will either lead to a diagnosis or a warning. However, the economy has a lot to do with the rise and success of political parties, geopolitical events, and natural disasters. These things can be felt, but they can’t be defined at the time when they’re happening. It’s incredibly complicated to realize that you’re in financial trouble, and almost all of the signs can be overlooked.
What are your goals?
If you’ve been investing in crypto for a long time, you might have noticed that there are differences in how you treat your money. Here’s an example. Imagine that you’re a long-term holder, and you get presented with the opportunity to buy Bitcoin when it’s at an all-time high of almost 70k.
If you know that it’s going to be 250k in five years, then it’s a no-brainer on whether you should buy it. However, if you’re a short-term investor, and you know that it’s going to fall under 40k as it is now, then it wouldn’t make sense to go for it.
Additionally, if you’re a day trader, the price wouldn’t matter at all. The only thing that would be important for you would be the direction in which it moves. We’re all different, and it’s important to distinguish what your goals are before you start putting any money into a project.
If you’re someone who wants to make a lot of money fast, you might put all of your hard-earned dollars into pump and dump schemes hoping to strike it big. But that’s more gambling than it is investing. The investor umbrella term puts everyone under the same roof and assumes that we’re all playing the same game.
But the economy isn’t like basketball, where all of our goals are aligned. Instead, we’re all playing a completely different game. A teenager who got a hundred bucks from their parents thinks differently than a window that’s close to retirement and didn’t start investing early. Their risk tolerance is completely different.
Should you invest in PKT Cash?
The answer to this question largely depends on whether you think the entire blockchain niche is a bubble or not. People don’t irrationally put their money into stocks, bonds, and real estate. The same thing is true about crypto.
However, the massive momentum has brought a lot of hands filled with dollar bills that want to make use of rising markets and massive return potential. Do you expect people to sit around and watch patiently as institutions and millionaires pour hundreds of thousands into something that will reach its peak in the next three or four decades?
That’s never going to happen, and it’s just one of the ways in which the world works. Mass media has a way of blowing things out of proportion. The entire crypto sphere is worth less than a trillion dollars. That’s not even close to precious metals, which are the least represented niche standing at ten trillion dollars. Companies like Blackrock have investment funds that are worth more than the value of gold in the entire world.
Projects like PKT Cash have a lot of long-term and short-term potential. When you invest, make sure to look at the team and see what kind of experience they have behind their back, as well as the funding sources.
Looking at market caps might give you the wrong idea of the project, especially if it’s still new or overperforming in a specific quarter. It’s important for you to differentiate between something with a utility like PKT Cash and something that was invented as a joke like Dogecoin.
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