A Natural Crypto Evolution

Moving from Precious Metals to Crypto Currency as my main hedge against market shifts.

I have always kept a very diverse basket of assets. Even in the FIRE community I was something of an oddball because of my love of all that glitters. Not a lot of GoldBugs in this world.

Part of my affinity for precious metals probably was linked to my Prepper Nature.

I still believe in keeping a certain amount of your Net Worth in precious metals, but recently I made a major move out of PM’s and into Crypto Currency.

Until now, I have always avoided Crypto Currency as a get rich quick scheme that I did not fully trust.

But I also do not like the entire banking industry, the Federal Reserve, and fiat currency in general. So as I learned more and more about decentralized finance or DeFi, I liked what I was hearing.

I would not be able to deny that some of my interest was tied to a FOMO (Fear of Missing Out), but I am fairly fiscally conservative. I held out until now.

We are on the cusp of a fundamental sea change in how the world handles ‘money’. This change is no less a big deal than the invention of the internet, IMHO.

So, I cashed out some Precious Metals that were sitting around for over a decade. The appreciation was solid and APMEX was easy to deal with selling PM to them through the mail.

I spun that money right around into several different types/quality of crypto on several different exchanges.

A bunch of Ethereum. This is the NEXT BIG THING. I also speculated on some way cheaper coins that may pan out. I could tell you I researched everything until I was an expert, but that is not true. Ethereum is a sure bet, the others were probably a bit of me buying into the hype.

As a cautionary note, I did not put ‘new money’ into this latest pivot, I simply exchanged one asset for another type of asset. I still think it is premature to cash in your 401k for Bitcoins.

But nowadays, I think that some exposure to crypto currency is as deserving a spot in your portfolio as all the other ‘normal’ asset classes.

I would love to hear your thoughts.

2 thoughts on “A Natural Crypto Evolution

  1. I think a little bit of FOMO is fine, especially if you have a well-rounded understanding of a variety of asset classes and a healthy curiosity (obviously you do).

    I felt the FIRE community reaction to the crypto surge earlier this year was very telling. The initial dismissiveness of the entire ecosystem from a group dedicated to an extremely outside-the-box lifestyle struck me as a sign of the movement hitting a wall. Of course, a couple months later all the blogs had their post about “Should You Buy Bitcoin?” with research obviously done from the first couple links of their Google search and their Coinbase referral link at the bottom, once again completely missing the big picture and bringing me to the realization that the Fire blogosphere is mostly the blind leading the blind at this point.

    • I have actually slowly backed out of the limelight of the whole FIRE scene because I did not like the direction things were headed. I miss the wild west days where we were nobodies trying to figure it all out and not semi-corporate sponsored listicle hacks.

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