Is Anyone Else as Confused About Cryptocurrency as I Am?
I like to consider myself a moderately intelligent person, but when it comes to cryptocurrency, we can go ahead and chuck that out the window.
With governments printing money like it's going out of style, inflation is increasing. Even with a diversified investment portfolio, it seems smart to keep looking for new opportunities wherever possible.
Because of the volatility, I’ve never considered cryptocurrency a viable investment opportunity for me, personally. But we’re living in unsettling times, so I figured it’s time to consider options.
To that end, I started reading about cryptocurrency and watching videos. After putting in significant time, I’ve come to one conclusion.
Could this be any more complicated?
Here’s what I know about cryptocurrency. Or at least, what I think I know. Don’t take this as facts or financial advice in any way, shape, or form.
- Crypto has outgrown every other investment in the last decade, including real estate
- However, it’s extremely volatile
- Some say Bitcoin is becoming a substitute for gold in terms of value
- However, it’s still volatile, while gold is not
- Crypto is stored on a blockchain. What’s that? I wish I knew
- Crypto comes in coins or tokens. A crypto token isn’t actually a token, it’s a series of numbers and letters (essentially a serial number). So, it’s an investment that doesn’t actually exist outside of digital space. Except that there are actually coins (see photo above)
- You keep your crypto investment in a digital wallet with its own specific address. If you lose that information, sorry friend, your crypto is lost
- Crypto is a currency, but it’s hard to spend. So you mainly hold it, I guess?
- Crypto can’t be hacked, except when it can
- Your identity is not attached to your crypto, but somehow no one person or entity can have a monopoly on crypto
- Crypto storage is decentralized by…