One third of millennials would rather invest $1,000 in bitcoin than in government bonds or stocks
That’s according to a recent survey of 2,000 people conducted by Blockchain
Capital. Unfortunately, it’s hard to imagine that the sentiment actually stems from a libertarian ideal to rid monetary systems of the state.
But here’s the thing. It is true that, if you had bought $5 worth of bitcoin at the beginning of 2012, you would now have almost $20,000. And had you put £10,000 in the FTSE 250 (which has performed better than the FTSE 100), back in 1986, by
2016, you would have made a comparatively meagre £265,035.
However, investing and betting are not the same thing. Of course, when you invest, there is no guarantee that you won’t lose your money, but the odds are not stacked against you, as they are when you gamble. Markets tend to rise over time, and sensible investing
will see you build a diversified portfolio, which means it’s unlikely your investment will be knocked out in one go. Bitcoin is still highly volatile, and it’s just one, unbacked, currency.
This week may have been the week that JP Morgan’s CEO Jamie Dimon said he regretted calling bitcoin a fraud, and there are plenty of us who think cryptocurrencies will change the financial system and, therefore, the world. But, for the time being, this tweet
from Jeremiah Owyang is worth your attention: “you’d be crazy to spend cryptocurrencies to buy goods, as the promise is as an investment. So will
they ever be used as a currency?” If not, where will value come from?