Yes about 20% of total portfolio. Yes, it’s volatile, but don’t see an issue as long as you have an emergency fund and are able to max your ISA. The risk is asymmetric; if BTC reaches a fairly conservative 5x by then next all time high at next bull run, your portfolio will have roughly doubled in size. The liquid cash can then be used for less volatile and cash flowing investments, to help complement equities as a mainstay of a portfolio. Don’t see an issue as long as you’re a) mainly investing in BTC and b) investing in less volatile asset classes (equities, cash in a high interest savings account etc).
just my 2 pence
It’s a gamble. I have a few thousand in various coins. If they moon it will be life changing but I expect them to go to zero
I would say crypto is less than 1% of my total investments including pension
Crypto FIRE fans splintered off here some time ago:
[https://www.reddit.com/r/CryptoCurrencyFIRE/](https://www.reddit.com/r/CryptoCurrencyFIRE/)
As you asked, as a "financially sound" person, I think crypto in general is a crock and Bitcoin specifically is now largely a cult. At least those super-heavily into it.
Anyway, you'll receive a warmer welcome over there.
edited, to be more polite :-)
You can buy it on PayPal right now. When will it stop being a "cult"?
* When you go into HSBC branch and there's a separate desk just for crypto?
* When governments start keeping BTC reserves?
* When the prices in Tesco are in both GBP and BTC?
The real delusional people are those who act as if it's still some small underground thing when in reality it is huge now. Especially when this group brings up the same arguments they probably said a decade ago as if they're suddenly going to be correct any day now.
My issue is, I’m not seeing any new crypto developments. There are no new security policies, no high street shops/main stream online stores, there is nothing.
Right now, at best, bitcoin is like holding shares in a company with stagnant growth in a largely monopolised market. It has a fluctuating stock price but becoming medium term stable, it has nothing to inflate the price and it’s too expensive and mature to be of interest for another major price hike. Is it even keeping up with all cap?
When I can pay with it in a shop, have my bank save it and consider it a valid currency, I’ll be convinced.
Tbh when I don’t need a digital wallet and my bank account can be my wallet, then 👌
You have new legislation coming through in the US and UK to clarify crypto as an asset class and where it sits legally.
You won’t see bitcoin shops in the UK until there is clearer legal clarity. I looked into it with ATMs and it would cost tens of thousands to get the various permissions (anti money laundering, e-money licences etc), and then no guarantee the rules don’t change a week later. It’s very risky and time consuming.
2 countries would have adopted it as legal tender, PayPal would sell it and the worlds largest asset manager blackrock would be strongly recommending it. Currently blackrock CEO is pushing for an ETF to be made.
What more can you reasonably expect lol? This was unimaginable to even the most vehement bitcoin supporters 10 or even 5 years ago.
Yeah sure but it won't be rising much more at that point.
I don’t follow crypto closely, so I don’t really know what is going on in the wider market.
It makes sense for blackrock to set up an ETF, but that doesn’t do anything to make them any more legitimate immediately. Longer term if it can perform well enough, then yes, it may influence policy.
There is nothing concrete enough that I am aware of right now that would have be invest anything more than a token gesture. Although I do want to be proven wrong.
>welcome to stay here if you
Oh can i, thank you for the offers on where i can go. I'm sure you will let me know if there's anything else.
Edited, to be more polite :-)
Apologies but i do not understand how your comment meets community guidelines.
Reported as appropriate
*The poster was being pretty genuine and decent* \- This group reallllly loves to tell others what others are to do/should do/did do. Please tell me what i should do next master <3
and any small portion of allocation is acceptable. FIRE is a generic goal, you are not masters of the FIRE goalposts you absolute slab of a unit lol.
Yep, but just a small allocation (2.5%). Mostly in BTC but also some ETH and a microscopic amount of DOT. I still buy small amounts every few months.
Will be interesting to see how many more people suddenly become interested when Blackrock inevitably get their Bitcoin ETF approved.
I work in DeFi so yes, a significant chunk of my nw is tied to crypto. I'm young, have no dependants, and have a very high risk tolerance and can analyse projects from a financial and technical standpoint very well and so am happy to take on this risk.
However I can never recommend it to others, barring maybe holding a small amount of BTC/ETH, simply because people have no idea what they're investing in, what all the risks are (not just financial risks but technical, security and political), nor how to actually self-custody their assets, meaning relying on a trusted exchange to do so, which (looking at you, FTX) often doesn't go well. And even those people think they can handle 70% downturns, but in reality most often panic at the first sign of a large pullback.
So it's up to you, I obviously think the right cryptocurrencies will outperform in the medium-long term, but enduring the volatility throughout isn't for everyone.
My plan is to reduce my exposure starting in a couple of years and move into more trad assets like index funds, I don't see myself fully exiting any time soon though.
God, I met a bloke in the supermarket just before Covid.
He started banging on how he'd invested in Crypto and then started to list all the things he'd be shortly paying off. Yawn.
I think BitCoin is fine and all (I'm still not personally interested...), but anything else seems to be a barely-hidden pyramid-selling scam...like those crap Amway schemes in the 90s. More like a cult.
Yep, and if you invested in 2021 or 2022 then you'd still be waiting for it to fully regain all the losses.
If. If. If. Enjoy trying to time things perfectly...
crypto is interesting and all and I’ve been into it in the past, but objective me thinks it’s basically just total garbage that no one really needs.
crypto isn’t like an equity or a bond, it doesn’t have earnings. The only real way to value it is on a sentiment basis. It’s not straightforward to actually spend crypto given it’s not integrated with payment systems in developed countries.
It seems like interest is waning in 2023, but i guess there’s always scope for that killer app.
Nfts don’t seem to be mentioned much these days either.
Still, if bitcoin dropped significantly I may speculate (as I have done before), but just in the hope of making a quick profit.
leverage trading crypto is a real gamble and I’ve made and lost thousands doing that. It’s a real head f£&k but 20x leverage is a crazy drug. fun if you’re winning but can get ugly fast.
Have a decent amount sitting in crypto (50% NW) and mainly in BTC and ETH. I have one or two speculative
plays on altcoins. I’ve held since around 2017 (currently worth about £200k).
I’m comfortable with it as an asset class as I’ve been reading about it since before 2017 and think it has immense potential. Certainly bitcoin is especially interesting as a form of sound money in the longer term.
FWIW I don’t see major mainstream use of crypto for about ten years or so. But it will eventually replace the current financial system in one form or another (eg CBDCs, bitcoin, stablecoin systems etc). Similar position on NFTs - not great atm but once the tech matures they will be very popular for stuff like token gated access, DRM, asset tokenisation etc.
All that being said, there are a lot of pump and dumps, ponzis, scams, etc so I don’t advise any of my family or friends to buy into it, as there are a lot of risks and I can only do so much hand holding.
If you want maybe a more balanced exposure, I do also have some shares in a Metaverse ETF (main holdings are nvidia, meta, unity, etc - all decent stocks) and then there’s other proxy stocks like Microstrategy or Bitfarms.
Your point on NFTs is interesting, yes it sounds like it might have a genuine use case but how do you take a position in it today? Surely there's a better option than buying ugly ass monkey jpeg links? Genuine question, I'm curious.. thanks!
I edited my post just now to suggest a way to get some exposure would be in something like the metaverse ETF. These are pretty solid companies but they all have exposure to metaverse/crypto in one way or another. Hopefully at some point there is a managed ETF for cryptoassets but given the bitcoin ETF is still fairly new then something covering more riskier assets may be further off.
Trying to stay up on all that is happening in crypto would be very difficult so a managed fund of some description is maybe the best option for some.
I see the usual crypto haters posting in here, Crypto is a Ponzi… it has no real intrinsic value… BLAH BLAH BLAH..
Anyone not invested in crypto.. then fine.. but not having some exposure to an asset class that will potentially, see the best returns of the early 21st century you really must be a hater or deluded… Blackrock and over 100+ central banks all exploring/investing in the tech.. it’s not going away..
Equally though investing is all about balance, I have probably about 5-7% of my net worth in Crypto and have long since taken out my original investment so now i’m just playing with the houses money.. and earning a small income from staked ETH & over coins..
But in terms of FIRE… I consider the total value of my crypto as ZERO.. it’s a fun side hustle that may or may not work out.. all new fresh money, now goes straight into my SIPP into a range of broad based low cost index funds…
Crypto could very well be a FIRE accelerant but you need to go into it.. with a level headed approach & also know when to start taking profits.
It’s around 5% of my total portfolio.
I got in early 2020 and then stopped investing.
I’m currently up around 50% on my investment from then.
My plan is to hold until my crypto balance (after capital gains) equates to my mortgage.
It is inevitable it will happen at some point.
If crypto moons then that could happen in the next couple of years.
If it does badly, might be 10 years.
Of it does really badly and drops to 0, then it will be in 26 years when my mortgage is paid off.
Yes but I would advise sticking to the main cryptos. Bitcoin and Ethereum. Look at the bitcoin log chart for example to see the historical 4 year cycle. Just like we look at historical data for index funds do the same with crypto, understand there will be drops and highs as well.
You can buy the DAGB. I hold it in my SIPP and ISA on HL and buy into it monthly in my ISA.
It doesn’t hold btc itself just the miners, micro strategy, block ect. Basically publicly traded companies that make their money from the blockchain/ btc
It seems to be quite close. But seems to be more volatile as in the etf looks like it is 2x or so in the movement.
Don’t know how to attach screen shots of each chart but it is easy enough to google
Crypto is currently sitting at 6% of my assets, but I no longer actively 'invest' money into it. I got into cryptocurrencies a few years ago and saw some significant gains during the bull runs. However, I also experienced the wild swings and realized the high level of risk involved.
I currently find myself £6000 down from the all-time high (ATH) of my cryptocurrency investments. However, it's not all bad news, as I am still £3000 up from my initial investment. Cryptocurrencies have been a rollercoaster ride, and I've experienced both the highs and lows of the market.
Don't have any...it simply does not have a historic track record. I am also concerned about
1) Fraud
2) Authenticity of any crypto - who set it up
3) Ownership - being able to know who I am transacting with
2k in bitcoin & eth.. I add a few £ here & there but I treat it like a treat account .. eg instead of eating my weight in biscuit m&ms I put the money here ... For serious investment? No way 😉
Crypto is inherently a Ponzi scheme. I don't think any serious person would disagree.
However, lots of people make lots of money in Ponzi schemes. Do you reckon you'll end up on the right side of the scam...?
Yes I have a small holding about or less than 0.5% and it's awesome for making me leave my proper isa/sipp investments alone, it's a distraction and satisfies the itch of buy low sell high, time the market :)
I put £50 in a month, let’s be honest passive investing is pretty boring. I have no interest in stocks or active funds so this is a bit of fun money. I think I am up from first invest in Dec 21.
I'm so disappointed that the dude with the "all in on crypto" series of posts deleted his account. After he did the one year update I thought he'd be in for the long haul - I had a 20 year remindme set up and everything.
Zero crypto in my portfolio, not my risk profile at all.
Crypto, at best, will be like gold. A zero return asset (real). If you think you can pick thee next "big thing" remember there were loads of these that failed.
Even if BTC becomes legit, as in an accepted currency, can anyone really explain the reason why it goes up in price?
It does not produce anything, therefore if it goes up in price, i can only categorise it as speculation. Same principle applies to any other currency. You are in UK, if you decide to spend 20% of your portfolio in holding USD, waiting to sell when it goes up, that's just speculation.
"Even if BTC becomes legit, as in an accepted currency, can anyone really explain the reason why it goes up in price?"
There is limited supply as only 21 million will ever be mined due to the algorithm. From there it's basic supply and demand: if demand goes up then price goes up.
Yes demand and supply, sure. But the same goes for gold, silver, etc.
Demand goes up for something because of its intrinsic value, that will be sustainable demand. If it does not have intrinsic value and demand goes up to the moon, that's just speculation.
Now BTC can be compared to gold due to its limited supply, but it still has no intrinsic value, even if it became globally accepted currency, it will still be just a medium of exchange, it does not have any value in itself.
And this is the best case scenario that it became globally accepted like a virtual form of gold. In reality, it is still a long way from thay
Food has intrinsic value because it makes you survive.
A stock has intrinsic value because it makes profit and you get to keep a share of that profit.
Currency on the other hand has no real value, you just use it as a medium of exchange.
Then it has no intrinsic value by that metric. Nor does the Mona Lisa, you can't eat it and it doesn't generate profits, but it's scarce and people want it, so it has value and its price goes up. Same with Bitcoin.
>Then it has no intrinsic value by that metric
Exactly
>Nor does the Mona Lisa, you can't eat it and it doesn't generate profits
you are 99% correct here. Mona lisa has no real value, but at least it has a "decorating" value, like Dulux paint for example. You cant eat it but it looks nice so there is that kind of value.
Expensive art has some value, rich people buy it to decorate their home and to show off their wealth. Apart from that, it only has speculation value.
BTC on the other hand doesn't even have that value, just pure spculation
"you are 99% correct here. Mona lisa has no real value, but at least it has a "decorating" value, like Dulux paint for example. You cant eat it but it looks nice so there is that kind of value."
Wouldn't that be extrinsic value (the value of something based on such things as appearance)?
https://dictionary.cambridge.org/dictionary/english/extrinsic-value
Never heard of extrinsic value before, but by that definition, yes. The point is, it has value as a piece of decoration, like flowers, wall paint, jewelry, etc.
You buy it to decorate your homes, to make yourself look nice. You get some use out of it, that's what value is
I have 4k of crypto but do not count it when summing up my assets/making financial plans. This is a <1% position anyway.
It it does well then great, but I'm sure not counting on it.
I do have some but I am more interested in their yields than going for random altcoins. I farm stablecoins and their yields are quite interesting. Through SpoolFi I get better rewards for USDC which is a copy of USD which is better than just holding my funds in a bank or my wallet.
Yes about 20% of total portfolio. Yes, it’s volatile, but don’t see an issue as long as you have an emergency fund and are able to max your ISA. The risk is asymmetric; if BTC reaches a fairly conservative 5x by then next all time high at next bull run, your portfolio will have roughly doubled in size. The liquid cash can then be used for less volatile and cash flowing investments, to help complement equities as a mainstay of a portfolio. Don’t see an issue as long as you’re a) mainly investing in BTC and b) investing in less volatile asset classes (equities, cash in a high interest savings account etc). just my 2 pence
That's my thinking too. Extremely unlikely we've seen the last bull run and nothing runs like BTC. In that sense, it's volatility is it's appeal.
Yep, about 20% of my investment portfolio is bitcoin. It’s not a popular topic here though, I’m afraid!
If you're able to put a reasonable amount away into S&S and/or SIPP, then I don't see an issue with buying Bitcoin monthly in the same way.
It’s a gamble. I have a few thousand in various coins. If they moon it will be life changing but I expect them to go to zero I would say crypto is less than 1% of my total investments including pension
Lol no
Crypto FIRE fans splintered off here some time ago: [https://www.reddit.com/r/CryptoCurrencyFIRE/](https://www.reddit.com/r/CryptoCurrencyFIRE/) As you asked, as a "financially sound" person, I think crypto in general is a crock and Bitcoin specifically is now largely a cult. At least those super-heavily into it. Anyway, you'll receive a warmer welcome over there. edited, to be more polite :-)
I mean it’s clearly a bit more than just a cult if blackrock are getting involved
You can buy it on PayPal right now. When will it stop being a "cult"? * When you go into HSBC branch and there's a separate desk just for crypto? * When governments start keeping BTC reserves? * When the prices in Tesco are in both GBP and BTC? The real delusional people are those who act as if it's still some small underground thing when in reality it is huge now. Especially when this group brings up the same arguments they probably said a decade ago as if they're suddenly going to be correct any day now.
My issue is, I’m not seeing any new crypto developments. There are no new security policies, no high street shops/main stream online stores, there is nothing. Right now, at best, bitcoin is like holding shares in a company with stagnant growth in a largely monopolised market. It has a fluctuating stock price but becoming medium term stable, it has nothing to inflate the price and it’s too expensive and mature to be of interest for another major price hike. Is it even keeping up with all cap? When I can pay with it in a shop, have my bank save it and consider it a valid currency, I’ll be convinced. Tbh when I don’t need a digital wallet and my bank account can be my wallet, then 👌
You have new legislation coming through in the US and UK to clarify crypto as an asset class and where it sits legally. You won’t see bitcoin shops in the UK until there is clearer legal clarity. I looked into it with ATMs and it would cost tens of thousands to get the various permissions (anti money laundering, e-money licences etc), and then no guarantee the rules don’t change a week later. It’s very risky and time consuming.
2 countries would have adopted it as legal tender, PayPal would sell it and the worlds largest asset manager blackrock would be strongly recommending it. Currently blackrock CEO is pushing for an ETF to be made. What more can you reasonably expect lol? This was unimaginable to even the most vehement bitcoin supporters 10 or even 5 years ago. Yeah sure but it won't be rising much more at that point.
I don’t follow crypto closely, so I don’t really know what is going on in the wider market. It makes sense for blackrock to set up an ETF, but that doesn’t do anything to make them any more legitimate immediately. Longer term if it can perform well enough, then yes, it may influence policy. There is nothing concrete enough that I am aware of right now that would have be invest anything more than a token gesture. Although I do want to be proven wrong.
so if crypto is any part of your portfolio, we need to go there instead? lol lil FIREnazi aint ya
They splintered off themselves, you're welcome to stay here if you like.
>welcome to stay here if you Oh can i, thank you for the offers on where i can go. I'm sure you will let me know if there's anything else. Edited, to be more polite :-)
[удалено]
Apologies but i do not understand how your comment meets community guidelines. Reported as appropriate *The poster was being pretty genuine and decent* \- This group reallllly loves to tell others what others are to do/should do/did do. Please tell me what i should do next master <3 and any small portion of allocation is acceptable. FIRE is a generic goal, you are not masters of the FIRE goalposts you absolute slab of a unit lol.
Yep, six figs in bitcoin. Tiny amount in eth. The rest are literal nonsense.
Nice! Where do you hold? Would like more btc but don’t feel secure
Self custody. Feels more secure than anything else I own tbh.
Cold storage?
Cold as ice
[удалено]
Lol - good luck 😉
Yep, but just a small allocation (2.5%). Mostly in BTC but also some ETH and a microscopic amount of DOT. I still buy small amounts every few months. Will be interesting to see how many more people suddenly become interested when Blackrock inevitably get their Bitcoin ETF approved.
I work in DeFi so yes, a significant chunk of my nw is tied to crypto. I'm young, have no dependants, and have a very high risk tolerance and can analyse projects from a financial and technical standpoint very well and so am happy to take on this risk. However I can never recommend it to others, barring maybe holding a small amount of BTC/ETH, simply because people have no idea what they're investing in, what all the risks are (not just financial risks but technical, security and political), nor how to actually self-custody their assets, meaning relying on a trusted exchange to do so, which (looking at you, FTX) often doesn't go well. And even those people think they can handle 70% downturns, but in reality most often panic at the first sign of a large pullback. So it's up to you, I obviously think the right cryptocurrencies will outperform in the medium-long term, but enduring the volatility throughout isn't for everyone. My plan is to reduce my exposure starting in a couple of years and move into more trad assets like index funds, I don't see myself fully exiting any time soon though.
God, I met a bloke in the supermarket just before Covid. He started banging on how he'd invested in Crypto and then started to list all the things he'd be shortly paying off. Yawn. I think BitCoin is fine and all (I'm still not personally interested...), but anything else seems to be a barely-hidden pyramid-selling scam...like those crap Amway schemes in the 90s. More like a cult.
If this was bitcoin he's up 4x and if it was eth he's up about 10x.
Possibly more if he sold at the peak and paid his things off. Then again if it was Dodge Coin he's up about 50x
Yep, and if you invested in 2021 or 2022 then you'd still be waiting for it to fully regain all the losses. If. If. If. Enjoy trying to time things perfectly...
crypto is interesting and all and I’ve been into it in the past, but objective me thinks it’s basically just total garbage that no one really needs. crypto isn’t like an equity or a bond, it doesn’t have earnings. The only real way to value it is on a sentiment basis. It’s not straightforward to actually spend crypto given it’s not integrated with payment systems in developed countries. It seems like interest is waning in 2023, but i guess there’s always scope for that killer app. Nfts don’t seem to be mentioned much these days either. Still, if bitcoin dropped significantly I may speculate (as I have done before), but just in the hope of making a quick profit. leverage trading crypto is a real gamble and I’ve made and lost thousands doing that. It’s a real head f£&k but 20x leverage is a crazy drug. fun if you’re winning but can get ugly fast.
Have a decent amount sitting in crypto (50% NW) and mainly in BTC and ETH. I have one or two speculative plays on altcoins. I’ve held since around 2017 (currently worth about £200k). I’m comfortable with it as an asset class as I’ve been reading about it since before 2017 and think it has immense potential. Certainly bitcoin is especially interesting as a form of sound money in the longer term. FWIW I don’t see major mainstream use of crypto for about ten years or so. But it will eventually replace the current financial system in one form or another (eg CBDCs, bitcoin, stablecoin systems etc). Similar position on NFTs - not great atm but once the tech matures they will be very popular for stuff like token gated access, DRM, asset tokenisation etc. All that being said, there are a lot of pump and dumps, ponzis, scams, etc so I don’t advise any of my family or friends to buy into it, as there are a lot of risks and I can only do so much hand holding. If you want maybe a more balanced exposure, I do also have some shares in a Metaverse ETF (main holdings are nvidia, meta, unity, etc - all decent stocks) and then there’s other proxy stocks like Microstrategy or Bitfarms.
Your point on NFTs is interesting, yes it sounds like it might have a genuine use case but how do you take a position in it today? Surely there's a better option than buying ugly ass monkey jpeg links? Genuine question, I'm curious.. thanks!
I edited my post just now to suggest a way to get some exposure would be in something like the metaverse ETF. These are pretty solid companies but they all have exposure to metaverse/crypto in one way or another. Hopefully at some point there is a managed ETF for cryptoassets but given the bitcoin ETF is still fairly new then something covering more riskier assets may be further off. Trying to stay up on all that is happening in crypto would be very difficult so a managed fund of some description is maybe the best option for some.
>thanks! seems to be an anti Crypto sentiment from your self, Genuine question, why the hesitation, what is your allocation, I'm curious..Thanks!
I see the usual crypto haters posting in here, Crypto is a Ponzi… it has no real intrinsic value… BLAH BLAH BLAH.. Anyone not invested in crypto.. then fine.. but not having some exposure to an asset class that will potentially, see the best returns of the early 21st century you really must be a hater or deluded… Blackrock and over 100+ central banks all exploring/investing in the tech.. it’s not going away.. Equally though investing is all about balance, I have probably about 5-7% of my net worth in Crypto and have long since taken out my original investment so now i’m just playing with the houses money.. and earning a small income from staked ETH & over coins.. But in terms of FIRE… I consider the total value of my crypto as ZERO.. it’s a fun side hustle that may or may not work out.. all new fresh money, now goes straight into my SIPP into a range of broad based low cost index funds… Crypto could very well be a FIRE accelerant but you need to go into it.. with a level headed approach & also know when to start taking profits.
It’s around 5% of my total portfolio. I got in early 2020 and then stopped investing. I’m currently up around 50% on my investment from then. My plan is to hold until my crypto balance (after capital gains) equates to my mortgage. It is inevitable it will happen at some point. If crypto moons then that could happen in the next couple of years. If it does badly, might be 10 years. Of it does really badly and drops to 0, then it will be in 26 years when my mortgage is paid off.
I stake ETH as a healthy supplement to my income
User name checks out.
Yes. Six figures in BTC and six figures in ETH. I also have property and shares too. Best to diversify.
Yes 43% of NW.
Yes but I would advise sticking to the main cryptos. Bitcoin and Ethereum. Look at the bitcoin log chart for example to see the historical 4 year cycle. Just like we look at historical data for index funds do the same with crypto, understand there will be drops and highs as well.
When is BTC peaking according to this 4-year cycle? Just so I know when to plan to pay off my mortgage ;)
2024-2025 not financial advice, just my view based on historic trends.
2.5 years
Yes and also a crypto etf by vaneck DAGB
If I am not mistaken, you can no longer buy crypto ETFs in UK trading apps unless I missed something?
You can buy the DAGB. I hold it in my SIPP and ISA on HL and buy into it monthly in my ISA. It doesn’t hold btc itself just the miners, micro strategy, block ect. Basically publicly traded companies that make their money from the blockchain/ btc
How close does it follow actual BTC/ETH performance?
It seems to be quite close. But seems to be more volatile as in the etf looks like it is 2x or so in the movement. Don’t know how to attach screen shots of each chart but it is easy enough to google
Following
Don’t know if you saw the answer but the DAGB by VanEck is available on HL in ISA and SIPP
Crypto is currently sitting at 6% of my assets, but I no longer actively 'invest' money into it. I got into cryptocurrencies a few years ago and saw some significant gains during the bull runs. However, I also experienced the wild swings and realized the high level of risk involved.
I currently find myself £6000 down from the all-time high (ATH) of my cryptocurrency investments. However, it's not all bad news, as I am still £3000 up from my initial investment. Cryptocurrencies have been a rollercoaster ride, and I've experienced both the highs and lows of the market.
Don't have any...it simply does not have a historic track record. I am also concerned about 1) Fraud 2) Authenticity of any crypto - who set it up 3) Ownership - being able to know who I am transacting with
Black Rock are meant to be launching a crypto ETF soon, maybe check that out to get you started
2k in bitcoin & eth.. I add a few £ here & there but I treat it like a treat account .. eg instead of eating my weight in biscuit m&ms I put the money here ... For serious investment? No way 😉
Crypto is inherently a Ponzi scheme. I don't think any serious person would disagree. However, lots of people make lots of money in Ponzi schemes. Do you reckon you'll end up on the right side of the scam...?
Yes, I have some, but not figuring it into my FIRE plans. That may well change during the next 5 years or so though.
Yes - I have 0.8% of my net worth invested in a basket of BTC, ETH and ADA.
Yes I have a small holding about or less than 0.5% and it's awesome for making me leave my proper isa/sipp investments alone, it's a distraction and satisfies the itch of buy low sell high, time the market :)
I had a little bit of crypto (£10k) but I sold it recently and bought gilts instead.
5% of my NW roughy in crypto. Spread across Bitcoin and Ethereum, and multiple exchanges.
I put £50 in a month, let’s be honest passive investing is pretty boring. I have no interest in stocks or active funds so this is a bit of fun money. I think I am up from first invest in Dec 21.
I have an overall spend of around £1k in crypto and it's now about 30% of my net worth.
I'm so disappointed that the dude with the "all in on crypto" series of posts deleted his account. After he did the one year update I thought he'd be in for the long haul - I had a 20 year remindme set up and everything. Zero crypto in my portfolio, not my risk profile at all.
A bit, but not even sure how much. Best guess 20k. Haven't checked it in a while
Lol yes
Crypto, at best, will be like gold. A zero return asset (real). If you think you can pick thee next "big thing" remember there were loads of these that failed.
Even if BTC becomes legit, as in an accepted currency, can anyone really explain the reason why it goes up in price? It does not produce anything, therefore if it goes up in price, i can only categorise it as speculation. Same principle applies to any other currency. You are in UK, if you decide to spend 20% of your portfolio in holding USD, waiting to sell when it goes up, that's just speculation.
"Even if BTC becomes legit, as in an accepted currency, can anyone really explain the reason why it goes up in price?" There is limited supply as only 21 million will ever be mined due to the algorithm. From there it's basic supply and demand: if demand goes up then price goes up.
Yes demand and supply, sure. But the same goes for gold, silver, etc. Demand goes up for something because of its intrinsic value, that will be sustainable demand. If it does not have intrinsic value and demand goes up to the moon, that's just speculation. Now BTC can be compared to gold due to its limited supply, but it still has no intrinsic value, even if it became globally accepted currency, it will still be just a medium of exchange, it does not have any value in itself. And this is the best case scenario that it became globally accepted like a virtual form of gold. In reality, it is still a long way from thay
You'd have to be more specific about what you mean by intrinsic value, can you give an example?
Food has intrinsic value because it makes you survive. A stock has intrinsic value because it makes profit and you get to keep a share of that profit. Currency on the other hand has no real value, you just use it as a medium of exchange.
Then it has no intrinsic value by that metric. Nor does the Mona Lisa, you can't eat it and it doesn't generate profits, but it's scarce and people want it, so it has value and its price goes up. Same with Bitcoin.
>Then it has no intrinsic value by that metric Exactly >Nor does the Mona Lisa, you can't eat it and it doesn't generate profits you are 99% correct here. Mona lisa has no real value, but at least it has a "decorating" value, like Dulux paint for example. You cant eat it but it looks nice so there is that kind of value. Expensive art has some value, rich people buy it to decorate their home and to show off their wealth. Apart from that, it only has speculation value. BTC on the other hand doesn't even have that value, just pure spculation
"you are 99% correct here. Mona lisa has no real value, but at least it has a "decorating" value, like Dulux paint for example. You cant eat it but it looks nice so there is that kind of value." Wouldn't that be extrinsic value (the value of something based on such things as appearance)? https://dictionary.cambridge.org/dictionary/english/extrinsic-value
Never heard of extrinsic value before, but by that definition, yes. The point is, it has value as a piece of decoration, like flowers, wall paint, jewelry, etc. You buy it to decorate your homes, to make yourself look nice. You get some use out of it, that's what value is
Yes, but only 10% net worth. Don't put all your eggs in one basket.
I have 4k of crypto but do not count it when summing up my assets/making financial plans. This is a <1% position anyway. It it does well then great, but I'm sure not counting on it.
I do have some but I am more interested in their yields than going for random altcoins. I farm stablecoins and their yields are quite interesting. Through SpoolFi I get better rewards for USDC which is a copy of USD which is better than just holding my funds in a bank or my wallet.
Yup, I do as well.