Why do I still want to buy crypto?

Given all of the risks outlines in previous posts, why do I still want to buy crypto? There are two broad categories of benefits, likely benefits and unlikely benefits.

Don’t take financial advice from Deadwood memes

Likely benefits

Opportunity

Crypto is scary, confusing, and intimidating and I think this is is keeping the price artificially low. One of the reasons the stock market has gone gangbusters over the past 50 years is that it’s become incrementally easier for regular people to invest. I believe the same will happen with crypto markets and as more people invest these types of assets will go up in value. I know it sounds silly to say you're an early adopter of crypto in 2022 but it is still far from being mainstream. As it becomes demystified and investment opportunities are democratized many more people will be able to enter the marketplace.*

Hedge against inflation

This is the first time in my life that I’ve experienced significant inflation and it is unsettling. I’ve identified exactly two investments which are decoupled from the US dollar losing value:

• Real estate

• Cryptocurrency

If you’re concerned about inflation and already own a home you might want to consider crypto as another inflation hedge.

Unlikely benefits

Hedge against the collapse of the US dollar

I have full faith in the US government and I think the collapse of the US dollar is infinitesimally unlikely but a lot of very weird things have happened over the past two years. If the dollar collapses you’ll be a little better off having some crypto.

Hedge against government action

With banking being mostly digitized it has become very easy for governments to freeze the assets of anyone it chooses. I don't expect an insane dictator to take over our country and freeze the assets of political opponents and/or dissidents but recent history has shown that Western democracies are willing to do this to its own citizens.

Being able to bug out financially

If for some reason you ever need to leave the country in a hurry and your bank accounts are inaccessible, having some crypto in reserve would be helpful.

Jane Colgate would probably have some crypto

* Please do not put any money into crypto that you cannot afford to lose– this is still a very risky, extremely volatile investment.

Open Questions

(none added from this post)