The #1 reason stocks are a better long-term investment than cryptocurrency

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BogleBuddy12
Posts: 436
Joined: Mon May 18, 2015 4:42 pm

The #1 reason stocks are a better long-term investment than cryptocurrency

Post by BogleBuddy12 »

Hello. Many people in my life are convinced that crypto is the future.

Please share your wisdom. What is the #1 reason you believe stocks are a better long-term investment?

Thanks and Happy Thanksgiving!
mhalley
Posts: 9185
Joined: Tue Nov 20, 2007 6:02 am

Re: The #1 reason stocks are a better long-term investment than cryptocurrency

Post by mhalley »

Crypto is in its infancy and there is no guarantee it will last, or which one will dominate. You certainly can take a huge gamble, and win big if you guess right. Or lose big if you guess wrong. But it is just a guess. Blockchain technology is certainly valuable, but crypto has no innate value.
Flyer24
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Joined: Sun Apr 08, 2018 4:21 pm

Re: The #1 reason stocks are a better long-term investment than cryptocurrency

Post by Flyer24 »

As a reminder, cryptocurrency as an investment is off-topic. See: Greater Fool Investing Strategies
Eventually, one runs out of greater fools. - Burton Malkiel

Discussions of investment strategies based on securities or physical assets that have no underlying value or negative expected long term returns are prohibited. Examples include: cryptocurrencies; lottery tickets; tulip bulbs; Ponzi, pyramid, and multi-level marketing schemes; affinity frauds; and market manipulation schemes.
And this post by the site owner: New Forum Policy Prohibiting Discussions of Cryptocurrency, Market Manipulation Schemes, etc as Investing Strategies
Note - This policy is limited to discussions of investing strategies. Discussions of cryptocurrencies in other contexts is still acceptable, for example for money transfers or microtransactions or the current thread on crypto trades and tax loss harvesting.

10/19/21 Edit: What about BITO, the new futures ETF?

This still falls under our prohibition. Our ban on crypto discussions is ultimately based on cryptocurrencies' lack of intrinsic value. While the ETF structure greatly reduces non-market risks, purchasing it is still a purely speculative gamble, not an investment.
Members may have crypto in their portfolio. The discussion may proceed as long as the strategy for managing crypto aligns with "Investing Advice Inspired by Jack Bogle". For example, selling crypto to purchase stocks or bonds.
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