Modern society loves a ‘star rating’. Most know what to expect if they book a 5-star hotel stay for a business trip when compared to a 3-star bed-and-breakfast for a weekend away. The investment field is no different…

World markets are very difficult to predict, and predicting the fortunes of a single company or stock is almost impossible. As consumer choices determine the success of a product, and with human nature being unpredictable and inconsistent, selecting the ‘right’ stock to buy is certainly a challenge.

Leverage, often referred to in investing as a ‘double-edged sword’, is another word for borrowing money to own more of an asset. Much like a mortgage on a house, it enables individuals to own a higher-value asset than they would otherwise be able to afford.

I suppose I’ve given my position away early with the title, but let me explain why I consider there to be something quite sinister about Bitcoin.

In our previous article – Instincts for Investing (Part 1) – we discussed the book ‘Factfulness’ by Hans Rosling. Rosling details 10 human instincts that prevent us from seeing the world as it truly is.