My journey into cryptocurrency wasn’t some grand investment strategy. Not at all. It began about a decade ago when I bought a single Bitcoin for $250.
My intention? To illustrate a TV news story I was shooting about this strange new “digital money.” I had my photographer shoot my computer screen as I was buying it, so viewers could understand the process.
I meant to sell it immediately after the piece aired. But then, life happened. I forgot about it. For years.
It wasn’t until Bitcoin started making headlines again, its price skyrocketing, that I remembered the forgotten digital coin, which was being held at a crypto exchange.
I can’t remember exactly what it was worth at that point, but it was in the low thousands. I exchanged about two-thirds of it for Ethereum, looking for some diversification within this new asset class.
Today, I still own one-third of a bitcoin and about a dozen Ethereum.
Were it not for that news story, I would probably have never invested in crypto. My portfolio, almost entirely stocks, is built on slow, steady growth – not moonshots.
At the same time, I can’t ignore an asset class that’s gone from niche tech experiment to trillion-dollar industry.
Here’s why it still drives me crazy, and why, despite my initial skepticism, I’ve held onto my crypto.
This is not, however, in any way, shape or form, an investment recommendation.
3 reasons I still can’t stand crypto
Let’s get my complaints out of the way first. Here’s why I think crypto is ridiculous.
1. It’s an irrational casino, not a sound investment
Most traditional investments have underlying value. A stock represents a piece of a company that produces goods or provides services. A bond is a loan that pays interest. Real estate provides shelter or income. Crypto? Its value isn’t based primarily on speculation. It’s based entirely on speculation.
The only reason to buy bitcoin is the hope of selling it to someone else for more than you paid. It has no intrinsic value. And while I can’t prove it, I wouldn’t be shocked to learn that the market is being manipulated by early entrants who control vast amounts of it.
This is known as the “greater fool” theory of investing, and that’s not how fortunes are made. Not mine, anyway.
In short, I believe crypto is more gambling than investing.
2. The ‘wild west’ regulatory landscape still gives me heartburn
Traditional finance is heavily regulated for a reason: to protect investors. When an exchange goes bankrupt, there are often built-in protections like FDIC or SIPC insurance, or at least a legal framework for repayment. In crypto, it’s often a free-for-all.
We’ve seen major exchanges collapse, wiping out customer assets with little recourse. Fraud, scams and hacks are rampant.
This lack of robust consumer protection and the constant threat of regulatory crackdowns (or more recently, the lack thereof) make me nervous.
3. It’s still mostly a solution looking for a problem
While some crypto applications are genuinely innovative, for the vast majority of people, most cryptocurrencies don’t solve an immediate, everyday problem better than existing solutions.
Paying with Bitcoin is slow, expensive, and volatile compared to a credit card. Decentralized social media platforms remain niche. Non-fungible tokens (NFTs), while interesting as digital collectibles, have resulted in vast fortunes for the issuers, but they haven’t improved society in any meaningful way.
Just the other day, one of my coworkers who’s been bitten by the crypto bug told me that crypto is a “hedge against inflation.” I’ve heard other proponents claim it’s a hedge against a falling dollar.
As 2025 comes to a close, the dollar continues to be weak and inflation has proven stubborn. Gold has responded exactly as one would expect, hitting new highs practically daily. But Bitcoin was $127,000 a few months ago, and as I write this it’s $86,000, down more than 30%. Why? I have no idea. And from what I can tell, neither do the talking heads on CNBC.
The technology (blockchain) is brilliant, but the application of most cryptocurrencies is simply speculative. Until it offers clear, undeniable advantages for the average consumer or business at scale, it feels like an early-stage beta product with a highly inflated price tag.
Yet, here’s why I own it anyway
Despite all my reservations, a small portion of my portfolio now consists of Bitcoin and Ethereum. Why? Because ignoring it completely felt like ignoring a potentially significant technological shift—especially after my accidental entry into it.
1. A small hedge against…something?
The unvarnished truth is I own crypto because I don’t want to feel like an idiot if I’m wrong and bitcoin hits a million, as so many of its evangelists insist it will.
As J.P. Morgan said: “Nothing so undermines your financial judgment as the sight of your neighbor getting rich.”
Yes, I just said its inflation and dollar hedge claims are dubious. But our global financial system, with its ever-increasing debt, quantitative easing, and political uncertainties, isn’t exactly a picture of unwavering stability.
Bitcoin, with its fixed supply (only 21 million ever) and decentralized nature, offers a theoretical hedge against the debasement of fiat currencies and potential systemic risks in traditional banking. (As long as people believe in it, that is.)
2. The technology behind it is a game-changer
Strip away the coins and the price action, and you’re left with blockchain – a truly revolutionary technology. Decentralized, immutable ledgers have the potential to disrupt industries far beyond finance: supply chain management, data security, health care records, digital identity.
Ethereum, for example, isn’t just a currency; it’s a platform for decentralized applications that could change how we interact online. That’s why I converted part of my bitcoin windfall into it.
Investing in core cryptocurrencies like Bitcoin and Ethereum isn’t just buying digital money; it’s buying a stake in the foundational technology that could power the next generation of the internet.
3. It’s being pushed by the powerful
President Trump has been in office for less than a year and has already made himself and his family billions in crypto. He’s declared the United States the crypto capital of the world.
His administration has dropped dozens of ongoing investigations and lawsuits involving crypto companies and players. He’s signed executive orders for a strategic bitcoin reserve. He signed the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) in law to regulate stablecoins (a type of cryptocurrency that aims to maintain a stable value relative to another asset).
In short, our president has radically altered the playing field to the benefit of this asset class.
My reluctant conclusion
Diversification is the bedrock of my investment strategy. While I mostly invest in stocks, I also own bonds, real estate, and some gold as well. Crypto offers a unique asset class that, despite its volatility, doesn’t always move in lockstep with traditional markets. This non-correlation can theoretically be valuable.
The key for me, however, is making sure this is truly “play money.” It’s an amount I could lose 100% of and still sleep soundly at night. It’s less than 5% of my overall liquid net worth. This way, if crypto goes to zero, it won’t derail my retirement. If it grows tenfold, it’s a nice bonus.
My advice? Don’t bet your retirement on it. Don’t fall for the hype. But also, don’t dismiss it outright. Allocate a tiny percentage of your portfolio, understand completely that it could go to zero, and treat it as a speculative bet on future technology.
If it moons, great. If not, at least you participated in one of the most intriguing financial experiments of our lifetime.
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