Crypto & Meme Stocks
Here’s something I personally have nothing to do with, but I know both have a following like nothing else. It’s kind of a controversial subject, but it’s important enough to touch on. Again, this all just my opinion… ultimately it’s up to you what’s right and wrong for your own goals.
I’ve done a good bit of research into the blockchain and crypto…. Bitcoin, altcoins and the different forms of blockchain tech that weaves each one. There are a lot of positives to them to be sure, but I just don’t see it becoming what many advocates believe it will. Whether we like it or not, currency needs regulation and 100% acceptance to work and the current crypto model I just can’t see achieving that. So as it stands and I believe always will stand, it’s a highly speculative asset that doesn’t hold any actual value. It’s worth what someone else is willing to pay for it… that’s it. Whereas with stock in a company, it’s value is in it’s profitability and you actually OWN a piece of these businesses. With crypto you own a virtual… nothing.
The other negative I see is in the environmental impact of mining coins. As it stands, it generates an unbelievable amount of power to mine crypto. I’m talking more energy than it takes to run a small country. Now I’m not a tree hugging hippie or anything, but I do respect the planet and realize if we screw it up too bad, we’re gonna be in some big trouble sooner than later. If someone can figure out a clean way to mine, that would be a game changer but as it stands, it’s really bad right now.
Now there is another upside if you like to gamble… crypto can be a great way to raise money fast if you’re lucky enough to time it right. Buy in at a low point and sell it off as soon as it shoots up high and rake in the profits. The gamble is in hoping it goes up higher than you bought it for and doesn’t tank. But again… just my opinion. If you love crypto and believe in it, power to you! I could be completely wrong and eating crow someday, but this is where I’m at right now. About the only actual advice I would give in this entire section would be… be careful.
Then we have the meme stocks. Unlike crypto, getting into these is a complete fools errand. The only ones coming out on top of this situation are the ones that bought in early and sold at the high point of the short squeeze. If you just want to “stick it to the man” and burn the hedge funds down while eventually highly likely losing your entire investment, jump in and have fun! But if you actually want to make money long term, it’s best to steer clear of the whole fiasco. These companies are half dead fundamentally and eventually, reality always comes crashing down. Don’t be left holding the bag when it does.