Is Bitcoin right for you?

I see where Russia is turning to cryptocurrency to avoid sanctions. 

Seems like there’s a new cryptocurrency every day. Scam? Ponzi scheme? Part of your retirement portfolio?

To answer this question for myself, I have to compare crypto to its alternatives. I’ll focus on Bitcoin because it’s been around awhile and seems to have a recognizable community of investors outside of the criminal users who imagine—wrongly—that Bitcoin transaction cannot be hacked.

Is Bitcoin a store of value? A casual examination of Bitcoin’s history says no, it’s far too volatile. It’s driven by speculation, not investing. 

Is it comparable to gold as an investment because both are scarce? No. Gold has utility in electronics and jewelry, for example. Bitcoin is stored electrons.

To me, Bitcoin and all other crypto really belong to the greater fool theory of investing—you make money by finding a greater fool willing to pay more for it than you did. As an investment, it is too risky. It belongs in the “investment” market of tulips, art or NFTs—which aren’t investing, they’re gambling. Look, I’ve gambled money once or twice in my life. My daughter once bet on a horse at the Saratoga racetrack that she knew nothing about and won $7. You be you.

The biggest gamble I ever took was the opportunity cost of going to grad school for my PhD. It paid off for me, but it’s not for everyone.

https://www.barnett-waddingham.co.uk/comment-insight/blog/bitcoin-currency-store-of-value-or-pure-speculation/ 

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