Crypto strategy update

Office Hours
#1

Hey Jeremy, going to throw a crazy one at you! A few months ago at the height (at the time at least) of BTC, GME and crypto-mania, you did a quick presentation on index funds versus Bitcoin and gave your rationale on basically why you personally choose indexing over crypto despite the insane growth. You followed that up by saying that you did have a little FOMO and were going to start DCA with about $100/month into BTC.

Well, crypto is still on fire, and while I still don’t really believe or understand the value of it, there is no denying the constant comparing and FOMO that occurs when you don’t own any. It also doesn’t look like it’s going anywhere but up in the future.

Do you have any update on your thoughts about crypto or your personal investing strategy for it?

Thanks,
TB

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#2

Hey Tom!

I’ll cover this in tonight’s office hours (4/14/2021) with the recording available afterwards on the course site!

If you’re not signed up for office hours, you can sign up here.

#3

Where can I find this? I recently signed up for the course :smile:

#4

Hey Richie!

You can see the recorded version of this office hours here (note you need to be signed up for the office hours to access these archived recordings):

https://courses.personalfinanceclub.com/courses/take/pfc-office-hours/lessons/23491338-2021-04-14-pfc-office-hours-live

For what it’s worth, my answer to this question is pretty much “I don’t know.”

By its fundamentals, I don’t really see crypto as a good way to build wealth long term. It should behave more like a currency or a commodity, both of which aren’t productive assets (don’t generate income or dividends) and historically generally keep up with inflation and not much else. But as a speculative bet that crypto will overtake fiat currency as the global standard of trade, maybe it will be worth a lot more! I don’t know! I’d argue that speculation is already BUILT INTO the current price, but clearly it has gone up an insane amount over the last 10 years. I don’t know what will happen over the next 10+ years.

I currently own less than $2K worth of crypto (~0.05% of my portfolio) and am investing $80/month into bitcoin and $20/month into ethereum (my attempt at a poor man’s index fund based on market cap of these coins). I’m doing this largely to avoid FOMO and regularly invest into this very speculative asset class.

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