Questioning Crypto As An Investment

Our primary investment vehicle has remained a diversified set of stocks and various funds. I recognize and understand the inherent risks of ‘the market” but to be honest we will never reach our retirement goals without the level of return we have been getting from these  investments. Precious metals has been our secondary investment vehicle as a way to hedge against a possible (probable) market collapse. We also keep a reserve of cash available for emergencies although we are starting to shrink that down due to the current inflation rate and low interest rates.

Last year in April I posted that we were starting to test the waters of investing in cryptocurrency, specifically Bitcoin (link). Since then we have continued to make (small) investments and built a tracking spreadsheet to help me to track and understand the performance of that investment. Two things happened this week that have me second guessing our crypto investments.

First moves, really rumored moves, by the US government cast a bit of a shadow on this as an investment option but then the chaos in Kazakhstan popped up. Immediately, the government there shut down Internet and cell services for much of the country. This did affect some operation and mining activities but, drove the price down 30% and more importantly, it worried me about what would happen if we lost access to our accounts and were unable to use them.

Sure, such activities in the US would affect access to my stock and bank accounts but not to the same degree as they would crypto. With any other accounts even if the Internet is down I can still manage or withdraw our  my money using the (landline) phone or even physically going into the office. Not so much with crypto, anything there would be essentially gone for the duration. Sure I can keep it in a local wallet BUT it would still be useless without the ability to transfer funds to other people in exchange for what we need or to “cash out.”

None of these concerns are new. They are the same concerns that kept me out of the crypto game for a long time but these two events did make me more hesitant. I think that this experiment is about to end for us.

I will keep what we have there and, to be honest, I even dropped another $100 into bitcoin this week since the prices were so low.

None of this is or should be taken as financial advice. I am no wizard with money or I would be retired to a nice compound somewhere living off the grid with my family and loved ones with me. I am just sharing my thoughts and concerns. Anyone with other/better ideas please feel free to share in the comments below.

Be alert, get prepared, fight the good fight!

God bless and God save the Republic.

 

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