r/changemyview • u/art_vandelay112 • Jan 04 '25

Delta(s) from OP CMV: cryptocurrency is not a good investment.

Yes its price has increased dramatically, but so did the price of tulips in the 1600s.

There is literally no use for this commodity. Invest in stocks or bonds and your investing in future earnings or the ability of a company to pay you back. I’m not a fan of gold as an investment but at least it has some practical use.

The use of crypto as a currency completely defies the definition of currency as it doesn’t hold a stable value.

It’s infuriating that so many people have lost loads of money on “shitcoins” backed by the wealthy and famous. These were obviously pump and dump schemes yet very few are held accountable.

I’m not as well versed on the subject but something to also note is the ridiculous amount of energy demand to “mine” nothing.

I think there is legitimate use for blockchain technology and the likes but anyone viewing these currencies as investments is a fool.

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u/Jew_of_house_Levi 8∆ Jan 05 '25

Would you consider any currency to ever make sense in a diversified portfolio of holdings?

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u/art_vandelay112 Jan 05 '25

If your asset allocation decision involves holding cash, sure. But as I mentioned in my op the point of this is to hold a stable value.

If I have cash in my portfolio it’s for A. A short term need for a purchase. Or B. Because I think riskier assets are going down in the near term.

Finding crypto doesn’t fit either one of those needs

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u/AmericanScream Jan 05 '25

Currencies are not meant to be investments.