Equities investing has been around for a long time, but cryptocurrency only slowly entered our lives over the past ten years. Now, as you've probably noticed, it is moving closer and closer to becoming a legitimate currency; Paypal has announced support for it through 2021, and Visa is not far behind.
But does this imply that you should invest all of your savings in cryptocurrencies like Bitcoin, Ethereum, or, God forbid, Dogecoin? It's difficult to witness this kind of news and not question whether you're missing out on some significant gains; as of this post, Dogecoin has grown 400% in just one week. In a sense, you are, but FOMO (or, Fear of Missing Out) is not always a good method to make a lot of money in a short period of time. Do we already know how much Bitcoin will cost in a month? No. In addition, we are unsure of Dogecoin's future direction.
The general agreement among those who are in favour of it is that 10% or less of your financial portfolio should be in cryptocurrency. Some people have even referred to it as the "new gold," and investor Chamath Palihapitiya said that cryptocurrency, particularly Bitcoin and Ethereum, which he supports, is a great way to protect one's assets from traditional money in the event that the banking system were to collapse or suffer further losses.
If you look at the track record of other well-known investors who have been in the business for a while, like Warren Buffett and Charlie Munger of Berkshire Hathaway - two US billionaires who rose to fame by making wise lifelong investments - they are NOT at all supporters of cryptocurrency. They tend to agree with their friend Bill Gates, who has amassed more money from investments than his original business Microsoft over the years.
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