I try to strike a relatively serious, yet still approachably casual tone with the posts I make on this forum; and in doing so, I hope to present the facts of relevant topics as well as my opinions (to the extent that they exist) so that the community at large can benefit from whatever we discuss on a daily basis.
But today, I just want to talk about something that I find amusing. It’s not particularly relevant, nor hugely consequential… except for those of us who have a gambling addiction and like to try to foot the bills on credit cards.
JP Morgan Chase, Capital One, Bank of America, and Citi have all officially banned consumers from using credit cards to purchase crypto through platforms like Coinbase. They have cited concerns over people being unable to pay their bills as general market conditions in the crypto industry have deteriorated, and prices have reached levels not seen since the growth explosion began back in November.
It’s a little sad that this whole crypto boom has resulted in major banks banning people from buying on credit.
Come on guys… we should all be smarter than that.
When they say, “don’t invest any amount of money that you can’t afford to lose entirely,” it’s not meant to just be background noise in an emotionally charged scramble to get in on the action.
It’s actually very sound, if not critically important advice. In such a new and volatile industry, anything you buy could go to zero at any moment, especially since most of it doesn’t have any real value in the first place.
Even in the regular financial markets, which are heavily regulated and much more stable than crypto, assets go to zero all the time. The explosion in volatility the yesterday made a lot of inverse indices essentially insolvent — in more plain english: worthless.
Actually less than worthless in many cases…
But I digress.
Bottom line is: don’t be foolish with your money, especially not in an industry that is so full of unexpected surprises. We’ve all lost money in the past few weeks, but it should never get to the point where you can’t afford to pay your bills or put food on the table.
Take on as much risk as you please; put your money in the most worthless crypto trash you can find.
But don’t be a fool and invest more than you have to lose.
Comments or questions? Leave them below!