Cryptocurrencies have been all the rage for a few years now and it seems like they have spurred interest over the pandemic – and yet I still haven’t bought any.
The surge in interest could be down to people’s pockets being fuller – prior to the cost of living crisis, of course – having been unable to travel or have meals out over the pandemic.
But even still, I haven’t been able to bring myself to buy a single one. Friends and acquaintances around me have put money into cryptoassets and recently, my husband even showed me a digital piece of art, which was an NFT, that his friend has poured all his money into.
When I hear these sorts of stories, I often find myself pondering if I’m going to be left behind.
Am I mad to not even take the slightest risk in buying it? Because ultimately, isn’t that what investing is all about? Taking risks?
So why can’t I bring myself to buy it?
Now given my patch as a journalist for a few years has been regulation, you could say it’s down to the fact that I know the Financial Conduct Authority’s constant outcry on this all too well: If you invest in crypto be prepared to lose all your money.
Thus it could be that I am, in fact, certainly not prepared to lose all my money. Or is it down to my risk-averse nature to always prefer to play it safe?
This would be wise given cryptocurrency markets have recently been a bit rocky after the Terra Luna token fell from $118 (£96) to $0.09 last week.
Still, I can’t quite fathom which of the two it is or if it’s both, but I do know one thing holding me back for sure is looking at those family and relatives around me that invested in the traditional way – by that I mean in stocks and shares, bonds, Isas, property, gold and so forth – and they seem to have done pretty well.
So why would I turn to assets such as crypto and NFTs, which are naturally more risky given they aren’t regulated, for perhaps the same return?
Now I know this will be a controversial opinion and some argue that the return is much higher with those riskier assets, and sooner too. And I’m sure that may even be correct in some cases. But what about in those cases that it isn’t, where is the plan B?
Crypto is making its way into the industry with the likes of companies such as Blackrock, UBS and Wisdom Tree all having come out in the press to be looking at ways to incorporate crypto investments for clients.
Last month, the chancellor Rishi Sunak asked The Royal Mint UK to create an NFT to be issued by the summer.
