Why I don't invest in cryptocurrencies

Bitcoin, Ether and Dogecoin are all the rage. However, here Tim explains why they are not for him as a long-term investor.

[georgec]

Excellent overview! Tim's opinion is one I value and take seriously... so I'm very glad it supports my current view. Thanks for sharing, and all the best dealing with comments!

[princeandrew]

A voice of reason in a sea of speculation

[davidcopperfield]

💯 I don’t invest in cryptocurrencies either, for similar reasons

[anrm]

I put 1% in btc & eth just in case. There's potential here & will increase my position

[maltesetony]

Wise words indeed! Like private equity ("equities on steroids"), or hedge funds (a rich man's mug's-game), crypto-currencies are WAY too risky for the average retail investor.

No serious responsible adviser - such as here - ever recommends these "investments".

[fabionery]

There are proxies that can be used to attempt to value cryptoassets. For example several protocols in the decentralised finance space already generate revenues which can be looked at in the context of their market cap to calculate P/S ratios and so on...

[boblargecock]

Whoa that beard! Lockdown must have been rough.

Love the vids (I recently sold my positions in Crypto, when the price drops I'll buy back in)

[faithlesshound]

Cryptocurrencies are for the gambler who is "afraid of missing out" and buys every lottery ticket available for the minuscule chance of becoming a millionaire. Is it a way of monetising hope, or a "tax on stupidity?"

[RakanXYZ]

You're a legend. I got into investing after seeing your initial videos prior to the February Market crash in 2020 and studied alot of them, and have profited well from it. Not a crypto investor yet this time round (was in 2017).
I agree crypto is not an investment (as judged by the volatility), its kinda why I'll use a technical analyst for trades on that front. Will continue to hold my stocks.

Most crypto investors (over 50npercent) solely hold crypto, and yes no one will become an ultra rich without concentration but, people are euphoric at this point. I will hold out till this cycle comes to an end.

There are metrics for crypto by adoption, utility, transaction per sec, interoperability and so forth. I am a novice in this and will continue to accept my novice status and diversify appropriately

[MrMoneyLong]

I largely agree with you. I’d however of the view it’s ok to have 10% of portfolio risky asset e.g Crypto.

[neilyoung]

For me, it’s simple, big money goes safe assets, where I can use leverage. Small money for enjoying life. This means buy to let, remortgage once value goes up.

[IgWannA]

I bought into bitcoin in 2019 at $8000 a coin, after having been a keen observer of the bubbles and crashes since 2011. I sold most at $53, 000 a coin but I understand it was a bit more luck than anything. Right now Ethereum has taken over and I pivoted towards it weeks ago and glad I did. Ethereum is the superior system in a number of ways (greener, DeFi capabilities, NFT, etc)

[tinajose]

The wisest thing that should be on every wise individual list is to invest in different stream of income that don't depend on the government to bring money especially now that the pandemic is hitting economy pretty hard.

[reaperuk]

In my opinion having 1-5% of your portfolio in a diversified set of crypto is sensible for a long term investor. The possibility for enormous gains is such a huge benefit that for me it simply outweighs the risk.

[philmcfadian]

I had a small side bet, trebled my outlay and withdrew my original capital. I will leave the remainder for the long term. I have no informed view on bitcoin so I got lucky but am not prepared to put any more capital in.

[ciaransheil]

What doesn't really make sense to me is why are these currencies considered as investments. The whole store of value notion doesn't seem to make sense. If they are supposed to appreciate how does that make sense if it's a currency. I agree with your thoughts I bought a little bitcoin and ethereum a couple years ago to learn.

[kenmccready]

Tim Thanks as always for your input and insights ....
IMO The stock market has been in existence since 1817, real estate division and subdivision since the 1200's. These markets have being developing over time with all the various debt cycles and bubbles monetary policy differing government strategies, gdp productivity not to mention technology and good old fear and greed .Crypto is here 10 years which the us government could outlaw through legislation as they did with gold in 1930's.Although there are some influential people getting involved, old strategie but you can diversify and have a percentage of money you can effort to lose in crypto, if you chose not for me as always Caveat emptor.

[stephenhall]

Look into the future such as flare network and so on definitely easy to get left in the past just like with computers if you don’t keep up with information you get left in past

[DocOrtmeyer]

Cryptos have no fundamental value and are based on projects that don’t generate revenue.

The end.

[VincentNoot]

It's just risky. If you don't want to lose money, don't do it. That's all. High opportunity, high risk. I've lost a lot of money in crypto and stocks. Everything is volatile. There are dividends, though. It's called "staking, " dude.