My Journey with Cryptocurrencies and why I’m investing less and less
When I started documenting my investments on this blog, cryptocurrencies made up about 67% of my investment portfolio. Today, they represent 0%. Well, not entirely, I still have an amount allocated to a cryptocurrency exchange that represents around 16% of all my portfolio.
Why have my cryptocurrencies gone from 67% of my portfolio to just 16%?
Several reasons provoked this change, but I can mention that I did not withdraw money from cryptocurrencies for other types of products. I simply pointed my financial reinforcements to other directions. Besides, the cryptocurrency market remains relatively low when compared to all-time highs.
Why am I not investing in the cryptocurrency market?
- Too unpredictable.
- I’ve dedicated myself more to the stock market in the last year.
- Being a market with a high level of risk, I set the 15% as the percentage to achieve in my overall portfolio.
- Very difficult to validate the value of the most of the cryptocurrencies projects. Comparing with the stock market I have at least access to reports that shows the performance of the companies.
Why did I lose some confidence in the cryptocurrency market?
Well, yes and no, I still believe on some projects… mainly on Bitcoin. Is the only who had the ambition to solve a problem from the beginning. I think it can work well as a store of value. I’ll re-apply my 16% of my portfolio when I believe it’s a good opportunity to invest.
However, despite Bitcoin, Ethereum, or others with similar consistency, I don’t want to hear about other projects. And when we go to the NFT’s… As for me it is simply absurd… I simply do not understand human behavior other than the ambition to have quick financial returns. In practice, it’s nothing.
About the NFT’s
Is it extremely necessary that the concept of NFT’s be mounted under a blockchain? Why I want to be the owner of a png file? Just to have my name engraved on a blockchain network? What’s the point of that?
My general thoughts about blockchain/cryptocurrency projects…
Most projects are overengineering.
Not all problems are solved with blockchain.
General people want simple things… that just works. (Not to configure virtual wallet on browser extensions and learn new concepts to be able to buy an asset or make a transaction).
In the end, people always think about their assets in their local currency like dollars or euros.
Blockchain technology has great value. However it is difficult to understand wanting to set up projects with such complexity under this type of networks.
Why did I change my mind so much about cryptocurrencies?
I think I just matured as an investor. These past two years have been a process of growth. And I discovery that this kind of volatility and risky is not for me. However, 16% of an portfolio in cryptocurrencies is not a low percentage. For now, I will just leave the money at the exchange, use it if I find a good opportunity. But I have no intentions of applying more in the medium term.
