Treat Crypto Like Tech Stocks

… I suspect many “Saul stocks” are down more than crypto.

Ric Edelman Says Advisors Need To Treat Crypto Like Tech Stocks
https://www.fa-mag.com/news/ric-edelman-says-advisors-need-t…

With the crypto market in freefall, hundreds of financial advisors joined Ric Edelman for what he billed as an “urgent” online dose of reality regarding their cypto holdings and what they should tell be telling clients.

Edelman, founder of the Digital Assets Council of Financial Professionals, told advisors on Monday during a webinar that it’s critical that they put cryptocurrencies in context. Yes, bitcoin has fallen some 70% since the beginning of the year, but it is up seven-fold since 2018, the advisor guru said.

“I don’t hear anyone telling investors they can’t put Netflix in a 401(k),” he said. Netflix’s biggest one-month decline was 53% in November 2021 compared to bitcoin’s 42% biggest one-month decline in June.

intercst

1 Like

What is the price of pets.com or Worldcom in bitcoin?

I have to admit that have never understood the appeal of Crypto.

One thing that I did realize early on was that if Crypto does turn out to be something revolutionary that transforms monetary transactions then the companies that I own stocks in through index funds will benefit so that I will not left behind by not owning it.

1 Like

I have to admit that have never understood the appeal of Crypto.

The appeal isn’t to “investors”. (And yes, those quotation marks are deliberate.)

The appeal is to the founders of each currency. They are the ones who convinced people to give them real, actual money in exchange for absolutely nothing.

It’s the ultimate pump and dump scheme. Or the ultimate ponzi scheme. I haven’t decided which is the more appropriate analogy. Perhaps a bit of both.

—Peter

1 Like

It’s the ultimate pump and dump scheme. Or the ultimate ponzi scheme. I haven’t decided which is the more appropriate analogy. Perhaps a bit of both.

Crypto is a broad category. Defi is 100% a Ponzi scheme. Rug pulls are when developers promise a new coin, but them abscond with the money. Apecoins and similar are pump and dump. Tether is just garden variety fraud. Bitcoin for the most part is just a good old fashioned speculative bubble. People like Musk and Saylor have been doing the pump, but were too late for the dump.

2 Likes