The Bitcoin Bullies Must Stop

Editor's Views: Is crypto in danger of becoming less of an asset class than a religion, which shuts down all sensible debate? 

Holly Black 28 May, 2021 | 10:47AM
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Whether you’re part of the HFSP (have fun staying poor) brigade or not, you can’t ignore crypto. There are plenty of arguments for holding some digital currency in your portfolio – not least the spectacular gains that some investors have enjoyed – but just as many reasons to steer clear. The sustainably-minded will likely be concerned that Bitcoin mining uses up more energy than Argentina, while those who enjoy a peaceful night’s sleep may not be able to handle the volatility.

What’s particularly interesting is the cult status that cryptocurrency appears to have earned. Anyone who says anything negative about Bitcoin is immediately pounced upon by internet trolls, branded stupid and sentenced to a lifetime of poverty. What is it about some assets that people can’t bear for anyone to disagree with them? When does an investment become a religion?

In the investment world, crypto is a relatively new asset, and investors must work out how to properly value and understand it. Some will conclude it is a get rich quick ticket; others will deem it a new digital gold that can provide diversification; some will decide it’s just not for them. All of those decisions are entirely fine. In fact, it’s crucial that we have people with different views because every buyer needs a seller on the other side of the trade, or the whole system comes crashing down.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Holly Black  is Senior Editor,