Gold bullion and gold miners and ASX shares are less interesting perhaps ?
Crypto currencies are similar to shares in some ways and vastly different in others
Crypto consists of the original Bitcoin which introduced and provides proof of concept for blockchain, which I think is technically brilliant and the work of genius
Bitcoin is one of the biggest parts of the Crypto narrative, it was 1st and it features prominently in media coverage and is legal tender with individuals, small businesses and large corporations (Microsoft etc) who predict they can benefit by offering it as a form of payment - thus furthering the narrative
Bitcoin is a digital currency - it is merely a digital form of currency or money
Bitcoin requires networked computers to exist and maintain digital mining and verification of Bitcoins and a one way - permanent blockchain ledger of all transactions that are verified and legitimate
There have been problems with scalability and as transaction volumes increased so did processing times which meant in late 2017 when cool kids where buying pizza or beer at a bar the transaction was not instant and in some cases were taking several minutes or hours to complete.
It wasn't a good look for those who claimed gold waa worthless and physical money was going to be replaced by Bitcoin any day now
Some scalability issues have been addressed but again most people didn't stop to consider that digital currency requires participants to have a mobile smart phone and stable internet connection and that many millions of people live without this.
Ripple is a very interesting and technically brilliant Crypto currency that fron the outset focused on scalability and transaction speed and they have succeeded in both
Ripple is very different to Bitcoin in that it is associated with a company, is not 100% decentralised and it aims to demonstrate technology that can be transplanted to private networks which has been of interest to central banks of many developed countries
So there is more to Crypto than hype and they may find a permanent place in the economic and social landscapes of our lives but..... they may also disappear and blockchain be adopted for less glamorous utility such as permanent record keeping of land registers or awarding of education degrees or criminal records or parking tickets
Bitcoin will likely be the Crypto spearhead for decades but do I want to own it & use it ?
Is it mostly hype with plenty of pump & dump just like any emerging technology or newly listed small cap with the promise of a disruptive technology and the promise of significant future earnings ?
Do you receive a CGT discount if you hold Bitcoin for 12 months before selling ?
Do you understand or have you used Bitcoin to buy something in person ?
Or is investing in mostly transparent and proven income generating ASX companies more appealing ?
ASX shares trade in minimum parcels of 1 share whereas Bitcoin & USA shares can be traded in fractions less than 1
Bitcoin fractions probably give rise to increased price manipulation opportunities with no oversight or repercussions
This is great if you got in early and have deep pockets and Crypto mates on the same page
But with all asset bubbles at some point those in the know realise when the jig is up or run further than they expected and it's time to take profits and find another avenue to grow wealth..... By any means neccessary !
Crypto trading is risky and unregulated
Share trading is risky but regulated (to a degree)
Both are taxable assets
I choose NST and property over Crypto
NST Price at posting:
$12.72 Sentiment: Buy Disclosure: Held
(20min delay)