Okay, let's talk Bitcoin. I'm Carlos, and I'm Gen Z. You might think we're all in on crypto, glued to our screens, dreaming of Lambos. Some are, sure. A lot of us are starting to see the writing on the wall: this party can't last forever. To be honest, I’m concerned about my generation getting scalded.
FOMO is Over, FOBHB is Here
At least in the U.S., for a few years the only thing people would tell you was “Bitcoin is going to the moon! Now, every influencer, every newspaper, every news article gone digital appeared to be yelling about the unstoppable increase. That’s precisely when you need to exercise caution. Remember Beanie Babies? The dot-com boom? Housing in 2008? History doesn't repeat, but it rhymes. And at this moment, the Bitcoin symphony sounds eerily similar.
What we’re witnessing now is the same kind of not-so-great exuberance, the same tales of average joes striking it fabulously wealthy all at once. That's a huge red flag. When your Uber driver is starting to give you stock advice, bullish to the sell. It's the same with Bitcoin. The more people talk about it like it’s a done deal, the further we go near the apex. Continue the discussion in the comments! The Fear Of Missing Out (FOMO) all the way to the top. Today, it has morphed into the Fear Of Being Left Holding the Bag (FOBHB).
I worry about my friends who are out there, just starting their careers. Many of them are betting their savings on bitcoin, trying to make a fast buck. They’re not even thinking to the long game, to the diversification, to the basic fiscal prudence. They’re pursuing a fantasy, and many of them are going to soon find themselves with a ready nightmare.
Narratives Fail, Reality Bites Back
What truly concerns me is the degree to which people are accepting narratives. "Bitcoin is the future!" "It's a hedge against inflation!" "It's going to replace gold!" Sure, maybe. Yet history proves that such narratives seldom withstand scrutiny.
Remember when Tesla bought Bitcoin? The price surged. Then what happened? It crashed. El Salvador made Bitcoin legal tender? Another short-lived pump, followed by a dump. Even WealthUmbrella, who nailed the buying opportunities in April, are at this point moving to a more defensive position. They're seeing the same warning signs.
Here's the thing: narratives sell, but they don't guarantee anything. Bitcoin isn't immune to market cycles. The sooner they realize that just because that guy on Twitter says it’s going to $1 million tomorrow doesn’t make it true the better. We all need to be truly following the data, following the technical indicators, and not just following the hype.
It’s the equivalent of thinking a catchy pop song is an example of great music. Sometimes, it's just catchy. Sometimes, it's just a fad. Other times, it’s a bubble about to pop.
Gen Z Needs a Safety Net Now
The other thing I’d mention is there’s a pretty ugly libertarian bone that goes through much of the Bitcoin space. "Government bad! Regulation bad! Freedom good!" I completely understand the allure, particularly for a younger generation that is disillusioned by institutions. The reality is, markets need rules. They require federal oversight to protect against manipulation and fraud. They need safety nets to help shield at-risk investors from fraud and abuse.
Bitcoin, as it’s currently constructed, provides absolutely none of that. It's a wild west where anything goes. And while a few lucky folks could really find success there, the majority of them would not. This is even more so the case for young or novice investors. They are especially susceptible to being dazzled by hype and they can’t risk losing their life savings.
We have to be upfront about the dangers. We need to discuss the likelihood of a crash, rather than merely discussing the possibility of wealth. We need to advocate for stronger regulation to protect everyone, especially the younger generation who are just starting out.
I'm not saying Bitcoin is inherently bad. It has potential. But at present, it’s too volatile, too unregulated, too hyped. We need to approach it with a degree of caution, with skepticism and yes, with a healthy dose of fear.
Therefore, Gen Z, let’s not be distracted by all the hype. It’s time to stop trying to mimic the mistakes of the past. Next time, let’s diversify our investments, conduct our due diligence, and shield ourselves from the coming inevitable correction. Let's be smart, not sorry. And you all who are somewhat older, full of experience? Talk to the kids. Share your wisdom. Guide them so they don’t make the same missteps you may have made. Which is why a Bitcoin crash wouldn’t be merely an embarrassing financial disaster; it would be a profound generational tragedy.
