Why do you invest in crypto?

As with other things in life, it’s vital that we are intentional with the way we channel our time, money and energy. We must shift our mindset from ‘getting rich’ to ‘building wealth’. The latter predisposes us to be patient and do frankly mundane things repetitively to chip away at our financial goals bit by bit.

Among the wide array of investment instruments, crypto appeals to some investors in spite of the high risks and volatility it carries:

1. Loss of faith in traditional financial institutions. With inflation escalating and eroding our purchasing power, it seems that central banks generally fall back on the wildly unoriginal method of printing more money. This is not to mention the fact that banks themselves may not be properly run, as best illustrated in the collapse of Silicon Valley Bank. When we cannot fully trust the system to take care of our financial destiny, we have to take matters into our own hands. Crypto is thus an attractive option. As a permissionless and trustless method, it empowers you to take full ownership of your money, which has to promote peace of mind.
2. Legacy planning for one’s children. Some investors are unaffected by the price action of cryptocurrencies because they invest money they can afford to lose. They also employ a long term view in the sense that they plan to pass their crypto portfolio down to their children. Guided by the desire to set their offspring up for future success, they relentlessly keep up with their DCA efforts.
3. Achieve various financial goals. Some people are determined to attain FIRE (Financial Independence Retire Early) and they see crypto as an instrumental element to fulfilling this goal. This is especially so because Bitcoin is occasionally decoupled with the stock market, so any pump in Bitcoin will expedite the attainment of FIRE. Others hope to pay off their mortgage or buy land or start their own business- lofty goals that cannot be achieved easily by simply scrimping and saving. Crypto yields a good dose of hopium for people who want to dream big.
4. Interest in the technology. Some investors are keen on the applications of blockchain technology and see a parallel between current times and the dot.com era in the late 1990s/early 2000s. Investing in crypto is therefore a direct way to support the projects they believe in.

Which reason(s) resonates strongly with you?