I’m definitely a punter, so much more towards the speculator side of things.
In the past, I’ve loved financial spreadbetting and gambling. It appeals to me much more than investing methodically in index tracker funds and equities.
Speculating hasn’t worked out too well for me in the past. I once lost a fair bit of money on an oil explorer called Gulf Keystone Petroleum (GKP), both in capital and in unrealised gains. It hurt a fair and I’ve learned not to risk too much of my overall capital on a speculative punt.
Why speculate on cryptocurrencies?
Cryptocurrencies have exploded in the last couple of years and I’m keen to get in now so as not to miss any gains in the future.
Naysayers have been predicting the bursting of the bubble for a while now but I don’t care.
I love a punt.
Bitcoin could go to zero in the next few years BUT it could go to USD 10,000 or even more.
What is the probability of it going to zero? It’s greater than the S&P going to zero. Is it greater than a FTSE100 company going to zero? Perhaps.
What is the probability of it popping to USD 10,000? It’s certainly possible.
It’s this second probability that makes me want to get into crypto.
Bitcoin has gone from USD 1,000 in February 2017 to USD 3,500 in August 2017. That’s over 200% in just six months! Who’s to say that it wouldn’t bag again? And again? We’re not even out of the early adoption phase. When it becomes more widely adopted, given it’s limited and finite supply, who’s to say that it won’t explode in price.
I’d be completely gutted if I didn’t have any exposure to crypto and it went to the moon.
Complete and utter FOMO.
So I’m getting in now. At least if it goes to the moon, I’ll have some skin in the game.
Are you a speculator or an investor? Do you get FOMO? Let me know in the comments below.