Why I'm Not (Yet) Invested In Cryptocurrency

A big disclaimer upfront: I’m not writing this blog post to provide arguments against cryptocurrency. There are too many articles and content out there on that and I have no intention to replicate the fiery discussions in this humble and little online space of mine. I write this blog post mostly for myself to document my thoughts and considerations on my investment decision at the moment. I might look back a few years from now to this blog post and regret my naivety or appreciate my sound judgment. Unless you didn’t notice the big “yet” in the title, this does not mean I will never meddle with cryptocurrency. Also if you didn’t notice the big “Why I’m not” instead of“Why you shouldn’t be” in the title, this is not financial advice to anyone either. Readers’ own discretion is advised.

This will be a concise post and I will break this down into three sections: from an asset perspective, from a utility perspective, and from a diversification perspective.

From an asset perspective

I do not “invest” in cryptocurrency for the same reason as to why I do not “invest” in Rolex watches or “invest” in rare Chanel handbags. The reason I put the quote end-quotes there is because I do not see buying them as investing.

When people say they buy a Rolex Daytona as an “investment”, what they really mean is they believe the price of the watch will go up and that they can sell the watch for a higher price than what they bought it for. They do not actually believe that the Rolex they buy will produce little other Rolexes or pay a rental fee for them.

In a more sophisticated term, they are called non-productive assets. Just like gold, silver, or wine. For me, buying them with the belief that the price will someday go up is speculating, not investing. I’m not yet interested in using my money for speculation on non-productive assets.

From a utility perspective

Cryptocurrency indeed has its usage that cannot be fulfilled with fiat money or traditional financial systems. For example, buying NFTs, sending money abroad with low-cost fees, transacting illegal organs or children undetected, and convoluted money laundering or tax evasion.

I’m not yet interested in NFTs, still very much satisfied with the service of Wise for transferring money abroad, definitely do not want to involve myself in organ or child trafficking, and do not have that much money yet to be interested in money laundering or tax evasion.

From a diversification perspective

I’m invested in broad indexes, ETFs, and bonds of markets in the United States, Singapore, China, and Indonesia. I think I’m well-diversified enough. Even though the Swiss Franc is stronger than the USD, I do not see why I should buy it just for the sake of diversification. The same reason applies to cryptocurrency, I do not see how having the coins in my portfolio can strengthen it.

Moreover, the volatility of cryptocurrency is more than what my risk appetite can stomach. This is actually also the reason why I do not buy or hold individual “growth stocks” anymore. I’m not yet ready for an expensive lesson in money and investment.

Ending Remarks

I hope that it’s clear that I do not offer any argument or state my stance on the technology and ecosystem of cryptocurrency in this post. I prefer to keep those discussions in private and with whom I believe I can engage rationally.

This might not be very helpful as I do not offer a lot of insights, but thank you for reading!

I create this little space on the internet to write my thoughts and reflections on being a human, a woman, and a software developer. I don't have Instagram/Twitter but I can be found on LinkedIn. Feel free to contact/give feedback/tell me your story through my email: ivanaairenee@gmail.com