Crypto is purely a speculative vehicle with zero underlying value. Thus, why would advisors ever recommend that clients purchase crypto in their portfolios?
- Crypto currency is not a store of value.
- Crypto currency is not a medium of exchange. Ever try buying something with Bitcoin, even at its peak? Massive haircuts at the point of sale to protect the seller from volatility was the norm. That’s not a medium of exchange.
- Crypto currency is not a unit of account.
- Even inflated fiat currencies such as the U.S. Dollar have far more utility than crypto currency.
Not an Asset:
- Crypto currency is technically not an asset. Crypto serves no useful purpose and has no inherent value. Crypto is not a substitute for land, a house, gold or an equity or fixed income security.
- Crypto is purely a speculative vehicle that has zero underlying value.