top of page


Cryptocurrency Stocks

Digital currencies such as Bitcoin (BTC) are once again gaining popularity among young investors. These securities have re-emerged and are attracting the attention of a new generation of investors eager to make profits in the market. However, it is essential to review Bitcoin's history before jumping on the bandwagon.


In 2013, Bitcoin was trading at around $13. If you had invested some of your allowance or birthday money in BTC, you would have been thrilled when the currency traded above $15,000 four years later, potentially making a significant profit. However, it's crucial to note that the currency also experienced a drastic drop, plummeting to as low as $ 3,200 a year later, wiping out almost 80% of new investors' money. This stark fluctuation in value illustrates the high volatility and potential losses of investing in Bitcoin.


Since 2019, the value of Bitcoin has been extremely volatile. It rose from $3,401.38 on February 8th to a staggering $67,549.73 on November 9th, 2021. However, it then suffered a significant drop, falling to $15,782.30 a year later. As of now, Bitcoin has made a comeback and is currently valued above $70,000.


So, what's next for Bitcoin? The truth is, nobody knows for sure. The cryptocurrency market is highly volatile and can be influenced by various factors. This unpredictability underscores the importance of considering your circumstances and deciding based on your investment horizon, risk tolerance, and financial goals. Investing in Bitcoin might be justifiable if you can hold your ground and stomach the volatility over seven to ten years. It could also be justified if it represents only a tiny % of your investment strategy, say 10%.


However, suppose your objective is to steadily grow your wealth over time without fearing losing half of it. In that case, choosing a diversified basket of global equities (i.e., an exchange-traded global equity fund) may be worth considering. Admittedly, you may miss the thrill of seeing your investment quadruple over time. But you will also avoid the agony of seeing it evaporate, leaving hope that it will one day recover, bit by bit.

bottom of page