Read the full blog here.
In this episode, Stuart presents a compelling analysis of the merits and pitfalls of investing in digital assets. Despite recent surges in Bitcoin's price and endorsements from influential figures like Blackrock's CEO, he expresses significant scepticism about cryptocurrencies as a worthwhile investment.
Stuart acknowledges the growing presence of fund managers and the proliferation of Bitcoin Exchange-Traded Funds (ETFs) as potential avenues for investment. However, he cautions against undue optimism, highlighting the commercial incentives of asset managers and the uncertain impact of ETFs on crypto's volatility. He argues that after over a decade, crypto has failed to gain wide adoption as a means of exchange beyond speculative investing and illicit activities. It lacks the fundamental utility underpinning traditional investments tied to products or services. Stuart likens crypto to a social Ponzi scheme reliant on continuously convincing new buyers.
Major drawbacks he outlines include extreme volatility undermining crypto's viability as a store of value, along with significant custody risks from unregulated exchanges vulnerable to hacking or bankruptcy. If crypto did achieve mainstream success, Stuart argues regulation would strip away its touted decentralised nature.
While some have gotten rich from crypto's rise, he cautions it operates on a zero-sum basis with equal losers. If investing, Stuart recommends only allocating what you can afford to lose within a fundamentally sound overall portfolio strategy, as the "music could stop any time on this speculative party."
ASK ME A QUESTION ON YOUTUBE: https://www.youtube.com/watch?v=ACnxmEP8vv8
My YouTube channel: https://youtube.com/@investopolypodcast
If this episode resonated with you, please leave a rating on your favourite podcast platform. It helps me reach more incredible listeners like you. Thank you for being a part of this journey! :-)
Click here to subscribe to Stuart's weekly email.
SPECIAL OFFER: Buy a one of Stuart's books for ONLY $20 including delivery. Use the discount code blog here.
Work with Stuart's team: At ProSolution Private Clients we encourage clients to adopt a holistic and evidence-based approach when making financial decisions. Visit our website.
IMPORTANT: This podcast provides general information about finance, taxes, and credit. This means that the content does not consider your specific objectives, financial situation, or needs. It is crucial for you to assess whether the information is suitable for your circumstances before taking any actions based on it. If you find yourself uncertain about the relevance or your specific needs, it is advisable to seek advice from a licensed and trustworthy professional.
Popular Podcasts
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations.
Death, Sex & Money
Anna Sale explores the big questions and hard choices that are often left out of polite conversation.
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.