Crypto-Currency is all the rage these days. It’s new, it sounds cool and has a liberal vibe to it. Bitcoin, Dogecoin, you name it!
However I do not think crypto-currency is a viable investment option right now.
- Bitcoins and most crypto-currencies that I know of (and I know little) does not have any intrinsic value. They are not backed by Gold or Silver.
- Governments have no incentive to support crypto currencies. Why would they legalise something that they cannot control?
- Bitcoin is so volatile that it’s value changes massively even with a tweet.
- Do you understand how crypto-coins work? Only Invest In Instruments That You Understand.
Don’t get me wrong, I am not saying that you cannot make money with crypto. If you have the stomach to sit through the high volatility, you might make a decent profit.
But our discussion is about investment and not trading. Trading is a profession, not an investment.
If you are keen on trading and having some fun, that is up to you. But if you are thinking long term investment, please avoid crypto-currency for now and invest in a better investing instrument.