Honest Thoughts on Bitcoin and Crypto as a Personal Finance Creator | by Modern Money | Financial Strategy | Dec, 2023
Here are TWO viewpoints to keep it simple. I’ll also explain Crypto and Bitcoin at a high level, which you can skip if you’re already an expert.
Key takeaways:
Cryptocurrencies are like online money. Blockchain is the underlying technology. Unlike regular money, Crypto doesn’t have a set value and is worth whatever people want to pay online.
Crypto may not be the ultimate solution, but the government printing money out of thin air is also a huge problem.
Investing in Crypto is a high-risk, high-reward endeavor (i.e., high volatility).
Crypto is relatively easy to grasp once you take the time to understand it. It is also a highly divisive topic.
Some people think it’s a scam or facilitates criminal activity. Most people aren’t sure how it’s priced or think its price will crash to nothing.
In some regards, all of those things are potentially true.
As someone who started investing young, I still think Crypto is worth considering for any investor.
Before you think I’m a crypto enthusiast, I’d like to emphasize that I’m just a typical investor with a diversified portfolio; Crypto is only a tiny part of my holdings.
Understandably, this is one of many times people have become wary of new financial products.
When Bank of America first introduced credit cards in the 1950s, there were plenty of denouncements and anxiety surrounding consumer credit cards.
But nowadays, using a credit card is like using a smartphone. It’s prevalent.
Crypto was in the same market phase as credit cards back then. They were both once considered *new* financial products.
People are distrusting of Crypto. They get anxious thinking of it. They don’t understand it.
For a good reason: it’s hardly explained in layperson’s terms, and there’s so much negative press about Crypto that…