“Should I Buy Cryptocurrency?” My Honest Thoughts on the Volatile Asset

Disclaimer: I am not a financial advisor. You are trading at your own risk and should consult a financial advisor for any investment decisions. Do your own due diligence when considering investing, and this information is for education/informational purposes only. The article “’Should I Buy Cryptocurrency?’ My Honest Thoughts On The Volatile Asset” serves as educational content, not investing advice.

Cover photo by Clay Banks on Unsplash.

Recently on the @bank_breaking Instagram page, you may have seen some stories where I’ve talked about cryptocurrency. I probably provided a vague answer to “Should I invest in cryptocurrency?”

Now, as you are probably quite aware, all cryptocurrencies, so those including Bitcoin, Ethereum, and especially Dogecoin, have been experiencing some downfall, to say the very least.

So, due to the recent news and events surrounding cryptocurrency, I figured I would give my thoughts about the topic of cryptocurrency. This article will serve as an open-ended one to discuss my ideas about crypto and investing in the currencies themselves. You will know my stance on the question “Should I buy cryptocurrency?” by the end of the article.

I hope you enjoy this style of article, and of course, if you want more like these, please do let me know down below in the comments and follow us on Instagram using the link above.

My Original Thoughts on Cryptocurrency:

My thoughts about cryptocurrency were initially publicized through the Smart Money Podcast interview that I had the chance to do and conduct. If you haven’t already listened to the Smart Money Podcast interview of Bank Breakers, please do so. As well you can check out the interview I conducted with them directly here on the website.

But my comments about cryptocurrency then and now at the time of this writing haven’t changed. I’m very skeptical about investing in cryptocurrency, especially if it’s the only investment in your portfolio.

I genuinely do see the upside with cryptocurrency. Regardless of the reaction the currencies have had over the past week, it has brought significant returns to holders. Of course, these returns are very enticing, and they’re kind of hard to look away from at times. Who wouldn’t want a slice of those earnings?

Yet while it has brought reward, it seems to bear much risk. It’s a volatile investment. I don’t think that can be debated, which is probably a minor reason why it turns me off from investing in it so much.

I do think that risk can be good, but of course, we know the downside to the risk and how potentially you can lose all of your capital investment or your earned money, so simple as the snap of two fingers.

I am afraid some people will have looked at the past year cryptocurrency has had and see how much it has grown and invested initially just because of that. Not because of any metrics or characteristics of the currency itself. Bitcoin should especially be mentioned in this case since it’s increased dramatically over the past year and people, along with the media, have been talking about digital currency more than ever.


Whenever you have an investment in something, you’re usually a big believer in the future benefit it can provide. With a stock, you’re a believer in the security’s or company’s future. With rental property, you believe that you can get a great deal of rental income from it and that even the building will be worth more with every appraisal. With cryptocurrency, your belief is its value increases over time, and there may be potential uses for this currency in society.

It’s the definition of an asset; that it provides some future benefit (and of course puts money into our pocket).

This leads me to speak about meme currencies. I think there’s a big difference between meme currencies and significant cryptocurrencies like Bitcoin, related to the definition of an asset. When investing in anything, you’re investing in the potential value it could provide. Obviously, as an investor, you’re looking for a great return on your investment.

There can be another underlying factor to the definition of an asset; what you’re investing in is the value it provides to other people or the general public. With Bitcoin, for example, you’re investing in that other people will buy into it and be that it’s going to have a use within society. So, many companies implementing Bitcoin as a payment method would be the primary example of this crypto in society.

Meme currencies, to me, are where you’re only investing in that other people buy into it. Or, of course, that you have someone who’s very famous talk highly of that particular currency (no shots against Elon Musk). Nothing else. So you’re relying on other people, and that the meme continues to grow over time which, as we know, certain memes do tend to die down.

It just doesn’t seem like a very feasible investment strategy to me and not one that I want to pursue. Now, if you were to hold some Dogecoin speculating that it could go up over time, I have no problem with that. Your strategies are your own, and that is fine. But investing a ton of money or your life savings into Dogecoin or these other meme currencies and hoping that it will go up to earn you a significant amount of return will not always work unless you are smart with your strategy.

People have made quite a bit of money on these meme currencies, and I’m sure more people will do the same. But I know those who invest a large amount of money into cryptocurrency will probably lose much money.

Riding the Wave:

Trying to ride the wave that cryptocurrency also provides is a dangerous tactic, especially for those investing a large sum of money that they cannot afford to lose in order to gain maybe 20 or 30% returns. With cryptocurrency investing and just investing in general, you have to be intelligent and logical about it. Yes, there have been people in the past who have betted everything they have against a particular stock or currency. But what we have to realize is that it’s not going to work out for everyone.

So, I think one of the reasons I’m very skeptical about investing in any cryptocurrency is its volatility. Now, I will put this on the record again that I have invested in cryptocurrency. But I’m investing strictly out of speculation that hopefully, over time, it will increase. Right now, I view any investments in cryptocurrency just strictly with speculation.

I do think that we are seemingly moving towards a cashless society and especially from a consumer perspective. In which retailers and Banks, among other big corporations, will try to use that to their advantage in their business model.

If we’re moving towards a cashless society, I can see where cryptocurrency comes in as an excellent investment for the future, which I will bet on out of speculation.

Influence of Returns and Longevity:

While I am currently discussing this, it is May the 20th of 2021, and the last time I checked, Bitcoin was just up 12.10%. Those returns are, as I said, challenging to look away from. Yet, I still do because I don’t want to be influenced by the fear of missing out. In the past, I have been, and let me tell you, it hasn’t worked out in my favor. Therefore, when deciding on crypto, I usually like to decide on any investment after giving it some thought, not because of the feelings of being left out of great returns.

I know that investing in these meme currencies has and still is taking over the internet. I have spoken to people who have invested in these currencies and fortunately made quite a bit of money off of them, which is excellent for them. But I start to question whether or not this is a long-term play, which probably isn’t if we’re honest.

Do I see Dogecoin going up to $30 per coin? I mean, I don’t know. Then again, I could never predict a cryptocurrency being called Dogecoin coming out. The power that memes and users of the internet have over cryptocurrency is probably something I won’t understand and won’t predict. I’ll be a fool maybe in 5 years from now when it goes up to $100, and I didn’t buy in when it was so cheap. Then you will come back to this article and say, “Haha, I had the last laugh.”

I’m trying to get at that with these meme-based currencies, it’s hard to predict how well it will perform over the next couple of years.

Even when I think about the performance over the past ten years of Bitcoin and Ethereum, the two prominent cryptocurrencies out there at the time of this writing, I wonder how long it’s going to remain popular.

You might assume that it will remain there forever, and it’s going to only go up over time. Of course, you’ve heard analysts and media people talk that it will go up to a price of $500,000 at one point, which sounds crazy initially and still does.

Yet is Bitcoin ever going to reach that amount? I don’t think we guarantee that. But over time, you have to assume that there will be other cryptocurrencies being released that will garner the media and investors’ attention.

So, the more cryptocurrencies there are, I would have to assume that current cryptocurrencies would become less valuable.

The only way I see that Bitcoin continues to rise amid the surge in cryptocurrencies is through the value provides to society. So, for example, if Bitcoin is used or payments on certain luxuries, many retailers and restaurants take it as a form of payment. That, to me, might increase the value of Bitcoin over time, although I’m not sure if it would result in a valuation of $500,000.

More Research:

Another major factor why I’m very undecided about cryptocurrency is my knowledge of it. I’ve expressed this before, and I will tell it again that I have to do more research and learn more about cryptocurrency before I’m fully bought into it full time.

Therefore, I’m looking for good articles or even good books that can help explain cryptocurrency, blockchain technology, or Bitcoin. If you have any recommendations on what I should read or what I should listen to, please leave them down below in the comments.

The truth is that I feel indecisive when it comes to this topic. I know people who have invested in cryptocurrency and speak of its wonders. Then I also know some people that would rather recommend stocks or other securities from the markets instead of investing in crypto.

So, I think that it entirely comes down to educating myself more about this topic and trying to understand the future that cryptocurrency holds within our society. I’ve already been speaking about where I think society will go and how cryptocurrency can play into that.

But what else am I missing? That’s what I try to ask myself. And what are the positives and where are the negatives, along with the value it’s going to provide to all of us now and, of course, in the long term.

Conclusions and Additional Comments from Others:

So, I advocate that you invest in any cryptocurrency with money that you can afford to lose. It would be the same way if you were investing in stocks. Invest with money that you can afford to lose.

I also have nothing against people who want to invest in cryptocurrencies if it seems like I’m slandering meme currencies or investing in digital currencies. I think that there’s probably a strategy out there that can help you earn a significant return over time by investing in this.

I wanted to have some people submit their comments about cryptocurrency so I could include them in this article. I am allowing myself and you, the reader, to gain other perspectives than my own about cryptocurrency.

Here is what some individuals had to say when I asked them if cryptocurrencies can be the investment for the future:

“I think it can be but you have to approach it with the idea that it is a very volatile investment.” – Calvin

“I do think that most and a lot of things will revolve around technology. Like cash moving to bank machines. BUT I feel the government will have issues with the lack of control with crypto currency. Like China is now with the recent ban. The jury is still out on that one.” – Trina

“I’ve been studying investing strategies since 16-17 and gambling since I was 19 and to me crypto is more the latter than the former. I think that the demand of investors outweighs the practical use of the currencies so that poses major concerns for the forecasting of it. It’s true I don’t have the best knowledge of what every currencies represents but it’s hard for me to believe that the hundreds of varieties of crypto all have a purpose and could thrive in the future. I will acknowledge that there is money to be made but at what risk premium do you have to pay?” – Nolan

“I like stonks.” – Serge

As you have seen, their comments are very similar to mine. We’re all in agreement that it is a volatile investment (which I’m sure now all crypto investors know), and we’re unsure where the future of cryptocurrency lies in our society.

There is much uncertainty about the future of cryptocurrency with some of the recent events, especially for meme-based cryptocurrencies. So I remain indecisive as well as cautious when it comes to these cryptocurrencies.

If the Shiba Inu coin goes up to $200 tomorrow after this article has been published, I may have to scrap all the investing strategies I know and start investing in the currencies myself.

All jokes aside, can you make money with cryptocurrency and learn how to make money with bitcoin specifically? Yes of course. But, when crypto trading, please do so safely. It is a volatile investment. Do your research if you are curious about how to make money with cryptocurrency and invest with money that you can afford to lose. We may be caught up in its highly lucrative returns and the fun we can have while investing in these digital assets, yet there is a significant danger to investing in them. 

All I ask is that you keep an open mind and, of course, be cautious when investing in anything.

So, how do I answer “Should I buy cryptocurrency?” I would advise you do more research and consider speculation as a strategy.

What are your thoughts about cryptocurrency? Is it’s going to be a driving force for returns to investors for the future, or is it just the fad? Should I buy cryptocurrency myself? Let me know.

You can check out my article about the time I studied 100 virtual basketball games to determine if there were any feasible strategies to use over at Medium. It was the very first article that appeared on this website and is published on that platform now.

Article: I Studied 100 Virtual Basketball Games. Here is What I Found

Disclaimer: I am not a financial advisor. You are trading at your own risk and should consult a financial advisor for any investment decisions. Do your own due diligence when considering investing, and this information is for education/informational purposes only. The article “’Should I Buy Cryptocurrency?’ My Honest Thoughts On The Volatile Asset” serves as educational content, not investing advice.