What happened The prices of Polkadot (CRYPTO:DOT), Polygon, (CRYPTO:MATIC), and XRP (CRYPTO:XRP) were all rising today, likely as investors...
Ah, but wouldn’t I be better off using my money to buy into Bitcoin instead, you may ask? The virtual currency was washed out just like the FTSE 100 as coronavirus fears spread. But the bounceback here has been even more spectacular than that of the Footsie.
Since mid March Bitcoin has more than doubled from its Covid-19 troughs and was last trading around the $9,500 marker. Like the FTSE 100, crypto assets have benefitted from rising risk appetite as lockdown measures have been unwound in major economies, and central banks have continued printing money like it’s going out of fashion.
Could Bitcoin have further to go? It’s quite possible. I wouldn’t be surprised to see it double again by the autumn. However, I wouldn’t be shocked were it to halve in value over the period, either. And therein lies the problem with the new-age currency. It’s prone to wild price swings that on most occasions follow neither rhyme nor reason.
As I say, the FTSE 100 has been extremely choppy of late. But one can understand why share pickers are jittery. The global economy faces the biggest downturn since the 1930s, after all. Volatility in Bitcoin is common during both good times and bad. It removes the need for sound investor thinking and makes success or failure more of a question of mere timing and luck. I for one am not prepared to risk my hard-earned money on an asset class where shrewd decision making plays no part.
Besides, at current prices there are a galaxy of FTSE 100 stocks I think are too cheap to miss. Some British blue chips carry the sort of low valuations that could turbocharge overall returns for long-term investors. So why take a chance with choppy Bitcoin?
Forget Bitcoin! I’d rather get rich and retire early with cheap FTSE 100 stocks