Today is President’s Day (or if you prefer, Washington’s Birthday) and the financial markets are closed. National holidays are opportune times to step back from the daily white noise to reflect on overarching investment trends.
The amusing (and exorbitantly expensive) television ads for cryptocurrency that aired during Super Bowl LVI got me to thinking about the lay public’s perception of crypto.
I’m leery of directly investing in crypto coins, but I don’t side with those who glibly dismiss crypto as a fad (or an outright scam) that will one day disappear. As one of those Super Bowl ads intoned: “Don’t be like Larry.”
Below, I debunk a few myths about crypto, by examining the pros and cons.
Regular readers of my Mind Over Markets column know that I’m skeptical about cryptocurrency. I’m in good company. But it’s also true that crypto represents a lasting revolution in finance, investing and consumer behavior.
First, a quick re-cap of comments from crypto’s harshest detractors.
Billionaire super-investor Warren Buffett has compared cryptocurrencies to 17th-century Dutch tulip mania. Buffett’s colleague at Berkshire Hathaway (NYSE: BRK.A, BRK.B), Charlie Munger, attacked Bitcoin (BTC) during Berkshire’s most recent annual meeting, calling it “disgusting” and “contrary to the interests of civilization.” He said cryptocurrencies in general are “useful to kidnappers and extortionists.”
