Entering the World of Cryptocurrencies

Entering the World of Cryptocurrencies

So, this week marks the first time the fund has invested in Cryptocurrencies. But, we started off very small compared to our other stock and ETF investments, just to test the waters. And, I think we will be buying little-by-little to do cost averaging, which I think is a good strategy, given the volatility and unpredictability of Bitcoin and other Cryptos.

You can always check out our current holdings (which now include cryptocurrencies) over here.

For the record, so far we’ve bought a bit of Bitcoin, Ethereum and DogeCoin, and the general strategy is that crypto is currently in a trough, or valley. Hopefully, crypto will push back up to all-time highs.

Why We’ve Resisted?

Cryptos like Bitcoin and Ethereum have no intrinsic value according to Warren Buffett, and investing in cryptos would be the same as gambling in a casino; but at the same time, digital currencies ARE currencies, and investors invest in dollars and other money. So, for years we’ve resisted the temptation to jump on the crypto bandwagon until now.

So, Why Now?

It was an article that I read, that said bitcoin will never go down to zero, and I was thinking of all the public-traded stocks that have flourished when skeptics said they would become worthless. There was one stock, Intuitive Surgical (ISRG) that was all the way down to $1 under a previous name, and today the stock is worth $824.99 a share! I heard that people sold at $1, and now they are probably kicking their heads over the dramatic positive change.

Bitcoin could very well go to 100K eventually. People were skeptical about Bitcoin when it was $50 a coin, and now even $30,000 a coin is pretty mindblowing.

So, the safest way to invest is to not put your life savings into cryptos, for starters. And only risk what you could bear to lose. And that’s pretty much our philosophy with cryptocurrencies so far.

Image by tom bark from Pixabay

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Portfolio Manager & Musician

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