It’s been a while since I wrote about cryptocurrency and cryptoassets. The last time I did, they were flying high. In 2022, it subsequently crashed. Industry leader Bitcoin dropped 70% with other crypto projects dropping 80%, 90%, or more in value. It has been one of the more brutal “crypto winters” that investors and developers in this space have suffered through, and that’s not even counting the FTX meltdown. Nobody knows when, or even if, crypto will soar again. But if you think it’s a great asset to hold for the long term, the end of 2022 (when I originally wrote this post) was a much better time to buy than in 2021. And at the beginning of 2023, it still might be. As of January 2023, things were slightly better with Bitcoin at about 23,000, and the other three had similar (but slightly lower) prices than what the charts are showing. Cryptocurrency is a broad and diverse asset class that comprises everything from the well-known Bitcoin cryptocurrency to the latest johnny-come-lately blockchain project started by a college freshman. Most of these projects aren’t going anywhere from an investment perspective. None of these coins, tokens, or currencies produce any earnings, rents, interest, or dividends. They are, by definition, speculative assets. That’s the main reason I don’t invest in any of them, and I recommend that readers limit their investment to 0%-5% of their portfolios. Whether you choose to invest, it’s a good idea to understand the pros and cons of doing so from an investment standpoint.
Full opinion : Pros and Cons of Cryptocurrency Investing.
