Cryptocurrency, Yay or Nay?

At Super-Advice we are about all things financial, but more importantly, helping people understand so they can get ahead financially.

In today’s blog post Jeremy shares with you his views on cryptocurrency.

What is Cryptocurrency?

We get a lot of questions on cryptocurrency and whether we should invest in it..

We don’t advocate investing in cryptocurrency.

Cryptocurrency essentially is a form of decentralised finance. So it is a way for people to buy and sell things, using a medium of exchange or a currency that’s not controlled by a governing body or a central government. So there’s no regulations or rules around it.

The cool thing I think about cryptocurrency is the technology that it uses to be able to work.

And that is blockchain.

What is blockchain?

Essentially what blockchain is. If I could explain it super simple, it is a way to register transactions. Once it’s done. It can never really be defrauded or changed or hacked or anything like that. So it’s incredibly secure. And without that technology cryptocurrency wouldn’t be able to work as well as it does

Who is attracted to Cryptocurrency?

Because it’s decentralized finance it’s very popular with criminal organizations, terrorist organizations blackmailers and essentially criminals. So that, in my opinion, isn’t a great thing.

Get rich quick?

But as far as, oh, I’m gonna buy some cryptocurrency, I’m gonna buy some Bitcoins and get rich….. 100% a lot of people have got incredibly rich with cryptocurrency.

You could buy a cryptocurrency coin for as little as a dollar. You know, a decade or so ago. And then they went right up to around $60,000, $70,000 US Dollars per coin, maybe a bit higher than that. But it’s incredibly volatile. Meaning that one day it might be worth $65,000 US dollars per coin to the next day it’s worth $55,000 US Dollars per coin.

And currently it sits, and has been for some time, around the very early twenties down to the high teens. So those people that bought into cryptocurrency early have made a heck of a lot of money. And those that were watching over the fence jumped into it a bit later, and didn’t make so much money.

Those people watching over the fence jumped into it quite late, they have lost everything. A lot of people have lost everything. I know there are a lot of believers out there with regards to cryptocurrency being the next thing and great. But as far as an investment goes, we consider it to be a non-producing asset, which it is as doesn’t produce anything.

It’s just there, and you are hoping that if you buy it as an investment, someone else will come along thinking that they can buy it off you and sell it to someone else and make more money. There’s a name for that: It’s called the greater fool theory.