Cryptocurrencies like Bitcoin are in the news every day. Most tech watchers and futurists predict that Bitcoin, and the blockchain technology that forms its foundation will change the way we deal with money and finances. Does that mean you should invest or buy one of the many tokens online? The answer is no, here is why:
These cryptographic tokens are still very much in early stages of development. Although Bitcoin is more than seven years old, it took a few for widespread interest. One of the biggest issues is volatility. The value of these currencies can shift as much as 20% in a single day in either direction. Putting a lot of money into a token now is more akin to gambling than investment.
The governments and financial systems of the world only now see that Bitcoin and similar tokens are here to stay. Some countries began the process by outlawing the such project entirely, others like Japan are looking to embrace it. However, until the entire process settles down, the political uncertainty will only add to the volatility.
Since blockchain tech is still in early days, there is a lot of discovery and technology to come. Imagine putting a lot of stock into a token only to find that some future discovery invalidates the entire chain, or series of chains. It is a big risk and you should only put in money that you are willing to lose.