I’ve known plenty of seemingly smart people who have said things like “My holographic Charizard 1st edition will be worth hundreds of dollars in a few years.” Everyone’s got one of those. Shut up.
Working in the FX and Equity Trading industry, I get a lot of investment questions from friends of mine. I used to be bothered that they’d ask me things like, “I’ve got 50 bucks to invest, can you help me make the right stock plays to become a millionaire?” But what has really annoyed me even more lately are basically any questions about whether they should invest money into bitcoins or not. And that’s mostly because if they’re asking me, it’s not even a question anymore. They’ve already decided that they’re gonna buy some, and also want my validation that it’s a good idea.
I usually answer with something like,
“I don’t trust cryptocurrencies because it’s hard to determine the real underlying value behind it. Blockchain technology is interesting, but most people are just trying to get rich off of it, and it’s heavily inflating the value.”
Which always gets a response like,
“You make a good point, but I still think there’s money to be made. The price went up 200% in the last month! I think I can get into bitcoin before it pops.”
And I don’t disagree that the price of bitcoin will keep going up for a while. It started off as a toy used by tech savvy nerds and online drug kingpins, but now cryptocurrency has begun to reach the market of speculative beanie baby and tulip bulb buyers. You know, people who have received large inheritances from a Nigerian prince.