I Like Money:
Cryptocurrency may be the best investment of all time. I've made good money actively trading on the volatility. But it's become a time consuming headache. I'm being pushed towards a passive investment strategy. But I can't shake the idea of getting in on that one ICO that turns my $1000 into $100milion. Oooh baby.
By the Numbers:
The yearly returns for top cryptocurrencies make them some of the best investments of all time. Bitcoin for example is the best investment for several years running. From a purely numbers perspective there is no doubt this market is worth investing in (probably even for the long term).
No Safety:
Yet this is an entirely new asset class. It lacks infrastructure, security, convenience, etc. There aren't really any solid research and rating agencies. Just a lot of random articles, hype, pundits weighing in with scant understanding. Without decades of past performance, regulations, etc. it's really unclear what might happen at the macro level. You specifically? Get locked out, scammed, or make a mistake? You're SOL. There's no one to help you. Maybe you make that $100million then a hacker steals it...
You Don't Know Shit:
And it wouldn't matter much if you did. If you're a computer scientist you might be able to read the white papers and make some sense of the inherent value of crypto tech. However you're still unlikely to understand the broader worldwide economic factors. Governments are starting to become interested and push regulation. So now we have international political and legal issues to consider. Despite the technological applications crypto still functions like currency. Confidence is what gives it value. And it's actually not THAT widely adopted, yet.
The Headache:
Crypto markets never sleep. Mobile trading leaves you open to hacking and theft. There are frequent trading delays, unclear tax implications, etc. Almost a complete lack of convenient and secure apps. ICOs require a lot of research and you're still mostly sifting through nonsense and hype. The major news media has been covering the cryptomarket. Don't mistake this for serious financial analysis. It's mostly a reaction to the hype.
Life Goals:
My philosophy on work/money is that no amount is worth sacrificing too much of my free time. Especially if it requires processing a ton of new information, unknown risk, stress, etc. I shake my head at fat billionaires who sit behind a desk. I want to be out traveling and having adventures. At least while I'm young.
Cautious Compromise:
Invest a modest amount of your overall portfolio. Only invest what you can afford to lose. Yada Yada. So maybe in a few years you turn $10k into $30k. While this is a fantastic return, is it really worth the risk, time, and stress? Especially if you're already living on a decent passive income and making use of international arbitrage?
Moving Forward:
I don't have the answers to this. I've learned a lot about crypto, but I still only have a layman's grasp. My concerns over security and taxes make me hesitant to do a big move. Yet, looking back on this summer there were a handful of opportunities I could have made millions if I was less conservative.
"If I just invested $1000 in Bitcoin back in 2011 it'd be worth hundreds of millions today." This is unshakeable. But would you have been able to ride out years of flat lining and volatility? Would you have sold out at a $800,000 profit not knowing if it was going to last?
Maybe drawing a modest yearly return and living a decent life off it is better. But how? There are some passive ETF, dividend schemes, etc. starting to come into crypto. Has anyone explored a formula?
Cryptocurrency may be the best investment of all time. I've made good money actively trading on the volatility. But it's become a time consuming headache. I'm being pushed towards a passive investment strategy. But I can't shake the idea of getting in on that one ICO that turns my $1000 into $100milion. Oooh baby.
By the Numbers:
The yearly returns for top cryptocurrencies make them some of the best investments of all time. Bitcoin for example is the best investment for several years running. From a purely numbers perspective there is no doubt this market is worth investing in (probably even for the long term).
No Safety:
Yet this is an entirely new asset class. It lacks infrastructure, security, convenience, etc. There aren't really any solid research and rating agencies. Just a lot of random articles, hype, pundits weighing in with scant understanding. Without decades of past performance, regulations, etc. it's really unclear what might happen at the macro level. You specifically? Get locked out, scammed, or make a mistake? You're SOL. There's no one to help you. Maybe you make that $100million then a hacker steals it...
You Don't Know Shit:
And it wouldn't matter much if you did. If you're a computer scientist you might be able to read the white papers and make some sense of the inherent value of crypto tech. However you're still unlikely to understand the broader worldwide economic factors. Governments are starting to become interested and push regulation. So now we have international political and legal issues to consider. Despite the technological applications crypto still functions like currency. Confidence is what gives it value. And it's actually not THAT widely adopted, yet.
The Headache:
Crypto markets never sleep. Mobile trading leaves you open to hacking and theft. There are frequent trading delays, unclear tax implications, etc. Almost a complete lack of convenient and secure apps. ICOs require a lot of research and you're still mostly sifting through nonsense and hype. The major news media has been covering the cryptomarket. Don't mistake this for serious financial analysis. It's mostly a reaction to the hype.
Life Goals:
My philosophy on work/money is that no amount is worth sacrificing too much of my free time. Especially if it requires processing a ton of new information, unknown risk, stress, etc. I shake my head at fat billionaires who sit behind a desk. I want to be out traveling and having adventures. At least while I'm young.
Cautious Compromise:
Invest a modest amount of your overall portfolio. Only invest what you can afford to lose. Yada Yada. So maybe in a few years you turn $10k into $30k. While this is a fantastic return, is it really worth the risk, time, and stress? Especially if you're already living on a decent passive income and making use of international arbitrage?
Moving Forward:
I don't have the answers to this. I've learned a lot about crypto, but I still only have a layman's grasp. My concerns over security and taxes make me hesitant to do a big move. Yet, looking back on this summer there were a handful of opportunities I could have made millions if I was less conservative.
"If I just invested $1000 in Bitcoin back in 2011 it'd be worth hundreds of millions today." This is unshakeable. But would you have been able to ride out years of flat lining and volatility? Would you have sold out at a $800,000 profit not knowing if it was going to last?
Maybe drawing a modest yearly return and living a decent life off it is better. But how? There are some passive ETF, dividend schemes, etc. starting to come into crypto. Has anyone explored a formula?