Can you elaborate on why no crypto?
Less than 10% of my money is in ETH and bitcoin. I am not in this for short-term gain but dang the prices are good. Just sold a little bit.
There's several reasons:
1) I don't understand it, or believe in it. It's a fiat currency, which isn't actually used as a currency. If you tried to sell it to me, what would you say? "It's money, that is not accepted anywhere, where a single unit is worth so much that you can't buy an apple with it, and it changes value so fast, that consumer prices cannot be tied to it, but it's valuable because it gains value?" That is a dangerous position, in my books.
2) Then it's unregulated. Your money disappears? You're on your own. Until it is regulated, which happened to the poker sites. The involvement in illegal enterprises opens the market up to being banned, regulated, or other things.
3) It's volatile. I don't invest in things that I have to frequently track. I only have so much mental space, and time. I can track the investments I have, and the businesses I partially own. I can't check the price of X several times per day and cross reference it to twitter, news, and whatever.
4) It's risky. The biggest player is a pseudonymous Japanese dude who could tank the market in an hour.... and we know nothing about him. If quantum computing is cracked, the currency will fail. Someone hacks a wallet and you're boned. The involvement in illegal enterprises is also a consideration.
5) It's objectively manipulated by several big players, according to recent publications. And I don't trust them.
6) I don't see a market inefficiency by which to get an advantage. I don't have the capital, knowledge, time, expertise, etc to beat others. That is how short term investing works.
7) IRS is moving to get capital gains on crypto. I had to fill in some forms on last year's returns. Capital gains would really affect the market. You'd need 6x to make that worth your while. And when you select those parts of your tax returns, the IRS will scrutinize the hell out of you. I opened some EU accounts, and suddenly the IRS decided to look through 7 years of financials.
8) There are better options to make the same, that I understand. If i wanted to day trade, I could trade options or futures, get similar results while staying in a regulated market. Same process: watch the market, locate an inefficiency, snipe a price, and wait. But I can use the math skills from my profession in that sphere. Not so with crypto.
In hindsight shame news, I used to even more of an uber nerd than I am now and had a metric butt ton of Magic cards from the first several editions. I see how much some of the cards I used to have multiples of are selling for now and do a slight face palm.
