Bitcoin Forum

Wealthy Families in Latin America Snapping Up Bitcoin

The average citizen in many Latin American countries has turned to Bitcoin in order to survive, and now many wealthy families are becoming a believer in the cryptocurrency and are buying as much as they can.

http://bitcoinist.com/wealthy-families-latin-america-snapping-bitcoin/

Well if you are wealthy already, there is not much risk in buying cryptocurrencies because even if the price crashes you have money already, and if the price surges (which has been the case so far) you're better off than before. So it's a low risk-high reward situation, no wonder rich people are investing.

It seems to me that this situation is typical for many countries. Bitcoin gives a very good profit in a short period of time. It attracts wealthy investors from around the world. Bitcoin is repeating the mistakes of Fiat. Rich people have the opportunity to enrich themselves. Now poor people are unable to feasible income but in the future, bitcoin will become an unattainable goal for them.

Risk is based on how much per cent of your capital you put into Bitcoin. In other words, it doesn't matter if you have $1 billion investment capital, or just $1000. If you put 90% of your capital in Bitcoin, again, regardless of the total amount your capital is worth, you'll be exposing yourself to insane risks. If you just decide to go with like 25% of your capital, and your investment turns out to be absolute trash and you lose everything (won't happen with Bitcoin, but for example purposes), you still have 75% of your capital left, and from there don't suffer that much of a blow. It's just a matter of logical thinking. Other than that, this article isn't pointing at anything new since it's happening on a global scale. I think nowadays the fear of missing out is playing a very important role. People knew Bitcoin already, but just didn't take it seriously due to their stupidity, and now they see how much development this market has gone through, they start jumping on board.

Rich people always have more and more money in their pockets and banks. as you said, the rich do not have to worry much, imagine if a rich man invests $300,000 in the purchase of bitcoin and he buys when the price of bitcoin is in the $15000 and the price of bitcoin falls to $10,000, this rich will not stop sleeping or go to parties because the price of bitcoin has dropped, he will hold his bitcoin until the day he has huge profits, because the rich have several investments. Now the poor would have reasons not to sleep and who knows how to prepare to sell everything and to cover the losses.

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Why in this article did not talk about the amount invested by these rich? this would give us a good idea of how much money the rich are investing in bitcoin

Your point is well-taken. Sooner or later brought about by Bitcoin's value, this will all about be for both those who held their Bitcoins from the onset and the financially able. As you can see now, Bitcoin's price is increasing day by day to the point that average businesspersons can no longer afford to purchase one. All they have, well, may be skill, but what is skill if you do not have the money to buy one? It is a fact that you cannot be in the Bitcoin bandwagon now if you do not have the money. Money has become a condition sine qua non to enter Bitcoin. 

Main point of importance is that people don't necessarily need to buy themselves a whole Bitcoin. I never understand why people focus so much on that. Bitcoin is divisible by default and from there allows basically anyone to to enter Bitcoin and to benefit in the long term. Fact is that every amount that's being seen as small/insignificant right now, will turn into something decent later. If you bought yourself $100 worth of Bitcoin in January of this year, you would now have $1400 worth of Bitcoin. People for once need to focus on what's possible instead of what's not possible. If you look further beyond your own logic, it will help you move forward in a better way.

There's going to be a nice shift of power if this continues as the wealthy bankers who were bashing BTC didn't go in. They were too afraid and lost the opportunity while poor people, kids and nerds, went all in and got filthy rich on it. Maybe now when fiat money loses some of its value compared to BTC it will also take away some power and influence from those old farts like Gyorgy Soros who are buying out politicians and financing riots all over the world. Get ready, BTC is coming to kick the establishment in the ass.