The Main Mistakes of Bitcoin Investors and Their Dire Consequences

Many people think that the ability to become a Bitcoin investor depends only on financial literacy or access to technology. In fact, the main role is played by personal qualities and the willingness to take responsibility

Most people make the same mistakes. The author of the book “The Age of Bitcoin and the Great Harvest” Adam Livingston talked about them in his X. He called his thread “the sad truth about owning BTC.”

Basic mistakes

Adam Livingston identified several of the main mistakes, in his opinion, that Bitcoin investors make:

• Lack of abstract thinking. People do not understand the value of digital scarcity and cryptography, perceiving Bitcoin as another “speculation toy.”
• Emotional instability. When the rate drops sharply, investors panic and sell at the bottom. As a result, the asset goes to more patient participants.
• Trusting intermediaries. Most newbies store coins on exchanges or in ETFs without actually owning them. The collapse of Mt. Gox and other platforms showed how this ends.
• The desire for “quick money”: Many view Bitcoin as a get-rich-quick scheme rather than a long-term accumulation system.

These mistakes lead to a person either losing their funds or becoming a tenant of financial intermediaries.

Consequences of mistakes

Every crisis redistributes coins: the impatient sell, and the disciplined buy. As a result, the concentration of cryptocurrency in the hands of large investors is constantly growing.

Livingstone estimates:

• The 97 largest addresses hold about 14% of all coins;
• ETFs have accumulated almost 6%;
• corporations own approximately 5%;
• states – about 2.5%.

In total, almost 27% of the entire supply is effectively withdrawn from free circulation. This increases inequality and reduces the “free” market.

Additionally, dependence on intermediaries increases. ETFs provide convenient access, but turn the investor into a tenant: commissions are paid annually, and control over the asset remains with the management company.

Prospects

By 2040, 99.6% of all coins will have been mined. The new supply will become statistically insignificant. This means that:

• the share of institutional players will continue to grow;
• coins will be concentrated in the hands of disciplined holders;
• Later investors will often buy not the coins themselves, but access to them through intermediaries.

How to avoid mistakes

• Understand the long-term nature of Bitcoin: it is not a get-rich-quick scheme, but a savings vehicle.
• Automate your purchases: Regular investing reduces the influence of emotions.
• Master self-custodial storage: hardware wallets, seed phrases, cold storage.
• Minimize dependence on intermediaries and their commissions.
• Learn from digital scarcity to security practices.

Let us recall that BeInCrypto previously wrote about how BlackRock, in the opinion of investors, manipulates the market in order to buy up cheap bitcoins.

Source: cryptonews.net