Everyone’s Talking About Cryptocurrencies. Should You Invest?

by | BiggerPockets.com

Absolutely everyone is talking about bitcoin, ethereum, ripple, and any other cryptocurrency. So I thought, hey, I might as well share my zero point two Australian cents with you guys.

It’s still very early on with this technology. A lot of people have no clue what they are doing, me included. I don’t really know what I am doing, but I have invested. I have invested for the reason that I want to learn what all of this is about. Plus, I have a big intuition telling me this is the wave of the future. This is the second internet, right? So I want to be a part of it. I want to be a part of it at ground level because I want to learn.

Which Cryptocurrencies Are Best for Investment?

I have invested quite a bit of money but have not touched the likes of bitcoin. Every John and his dog is investing in bitcoin, and I’m a black sheep. I don’t want to be like everyone else. After doing a lot of research and speaking to a lot of other successful entrepreneurs and business partners, I’ve heard that bitcoin is not a technology that has been built as well as some of the others.

For example, ethereum has been built in a much better way than Bitcoin has. What’s so cool about ethereum is other cryptos can build their own blockchain or expand on ethereum’s blockchain to start their own cryptocurrency. So think of it as an app store. Other companies can go in there, build their own apps, and make money from those apps that they build. Ethereum is a really popular one right now. Another one that is really big is ripple. I’m not a big fan of ripple just because the founders of it have created huge wealth for themselves from launching this cryptocurrency, and I just don’t agree with their philosophy.

Related: 4 Reasons Cryptocurrencies & Blockchain Technology Are Poised to Transform Real Estate

So I have invested in a few not-so-hot cryptocurrencies based on the advice that I have received from a lot of my colleagues. The tech behind these particular blockchains is awesome, and the team behind these particular blockchains is even better. Their vision for the future just makes a lot of sense to me. So I thought I would put some money in to test it out, get my feet wet, and learn the process.

Proceed With Caution

My advice to you is don’t go all in. Don’t sell your house to invest in bitcoin, ethereum, ripple, and all these other cryptocurrencies. If you are going to invest, invest small and learn what the hell it is that they are doing. I truly believe we are at the beginning of something great. But I also believe that there is going to be a huge crash somehow. Maybe there will be only a few survivors like in the dot-com boom. Will that be bitcoin, ethereum, ripple, or stellar lumens? I don’t know. I do believe someone will survive and they will thrive.

So, who’s investing in cryptocurrencies right now and what’s your take?

Comment below!

About Author

Engelo Rumora

Engelo Rumora “The Real Estate Dingo” is a successful property investor, motivational speaker and serial entrepreneur that quit school at the age of 14 and played professional soccer at 18. He is also a soon to be published author along with becoming a TV personality in his very own real estate house flipping show. To find out more go to engelorumora.com . Engelo Rumora has been involved in over 400 real estate deals and founded five businesses in Ohio. The most successful is Ohio Cashflow, a company that specializes in providing turnkey properties in several Ohio markets. The newest venture is List’n Sell Realty, a real estate brokerage based in Toledo, Ohio and soon to be known as the #1 discount broker in the country.

29 Comments

    • Engelo Rumora

      Thanks Dominic,

      Only invest what you can comfortable afford to loose.

      I think we are at the forefront of something revolutionary here and everyone should be a part of it.

      If not from an “investment” standpoint then at least by conducting a tonne of research.

      Much success

  1. Christopher Smith

    I always thought the primary function and utility of a currency was to create a very stable unit of monetary exchange. It seems as if Cryptocurrencies are the very antithesis of this attribute, with abject instability in value being their primary characteristic, at least so far.

    Why would you transact in something when you have no reliable means of knowing what it will be worth from day to day, or even minute by minute. The only thing that I can think of why someone would incur that additional “currency” related risk is to perhaps conceal actual or quasi criminal activities or other forms of transactional subterfuge. Is this consistent with sound (or even acceptable) public policy?

    Additionally, what would stop any sovereign from severely restricting or out right banning individuals from transacting in Cryptocurrencies justified (if justification were even needed which it probably would not be) by a whole host of reasons (e.g., tax evasion potential, de facto money laundering and counterfitting, etc.)? The soveriegn itself is capable of instituting blockchain techniques (which is really the technology here) for its own currency, and could therefore declare all othe non sovereign blockchain based currencies illegal tender.

    • Engelo Rumora

      Thanks for your comment Chris,

      The biggest risk to crypto in 2018 is if the close down the exchanges.

      I think’s it’s “too big to fail”

      Everyone caught the buzz and it just keeps getting bigger.

      Wall St is coming in soon and then “mummy and daddy”

      Just my opinion

      • Christopher Smith

        Not sure you addressed any of my points, pretty sure you didn’t actually.

        What is the purpose of this new currency (not the technology)?
        What makes it inherently valuable as a currency?
        Where is the true value being created?

        It seems wholly unsuitable for currency purposes in that a currency should reflect a stable medium of exchange, not something that fluctuates widely from second to second, how does that make it useful as a currency?

        Can you answer any of these question adequately?

        • Engelo Rumora

          Thanks Chris,

          I didn’t address any of them intentionally because I don’t know the answers

          Any answer would just be a fluffy one.

          I just got back from a Blockchain conference in San Fran and even the founders of the likes of Litecoin and NEO give fluffy answers lol

          Plus, you use big words and I’m just a simple guy that quit school at a young age.

          I do appreciate you reading my blogs and commenting regularly tho 🙂

          Thanks again

        • Kole K.

          bitcoin is valuable Because it is immutable money that can do things traditional money cannot. As long as 2 nodes are on the network, bitcoin runs 24/7, 365 days a year, decentralized so nobody controls it, no way for users to do charge backs on merchants, acts as a store of value, can be used as unregistered or registered value.

          As far as using for currency, I would argue traditional currencies work better unless you live in a country with high inflation such as Argentina, Venezuela, Zimbabwe, etc.

          Bitcoin may not solve any day to day problems for you Chris, but for many is it a god send. Transmitting and storing value is not the only use case as this immutable public ledger can be used for other applications only limited by your imagination. Internet did not make sense to the laymen in the early 90s as email and websites seemed useless. Look where we are at in 2018, who would have thought? Anyone that listened to Steve Jobs in the early 80’s would have seen what was to come.

      • Kole K.

        Decentralized exchanges exist, the government can shut don the centralized exchanges but you can’t stop the decentralized ones. Atomic swaps will also make the centralized exchanges obsolete.

        Wall St is already in Bitcoin with futures trading

        • Christopher Smith

          Money laundering has many of the very same qualities (probably for some of the very same reasons) which is precisely why its often an activity made illegal by many of the most powerful Governments (e.g., China, US and most EU countries). Sure you can still do it, but at your own peril.

          Let me tell you another trend that is increasing a break neck pace its called full financial transparency, and there are many governments that intend to render all financial transactional activity that isn’t fully transparent to the public as per se illegal activity (e.g., see the paradise papers).

          Not sure I support that, but utilizing technology to specifically hide financial transactional activity may be running head long into some very powerful forces which may have a very different take on the desirability of allowing the utilization cryptocurrencies by private individuals.

          These forces that have specific law making authority. Of course you may attempt to end run these forces and the laws that they enact, but then what do you become the Pablo Escobar of Cryptocurrency? I have a really hard time believing Governments will tolerate the utilization of blockchain technology to facilitate the totally undisclosed, untraceable and unregulated movement of currency. It will be a direct threat to the Govt’s ability to tax, and I can assure you they won’t stand for that. They will use every tool at their disposal to prevent that.

          I get the technology, no problem with that, but not its unfettered utilization as a secret currency by private individuals. Would we allow individuals the ability to legally possess and exploit nuclear weaponry. That may sound like misplaced hyperbole, but from the perspective of sovereign governments I’m guessing not.

        • Kole K.

          bitcoin is not secret, it is a public ledger and the feds are already tracking it with the help of several companies. Cash is the best tool for money laundering and all the big banks are getting busted and fined for participating in it.

    • DJ Scruggs

      Currencies have three functions:

      1. Medium of exchange
      2. Unit of account
      3. Store of value

      Right now cyrptocurrencies have aspect of all three, but the gyrations relative to the dollar are not sustainable over the long term. Fortunately there’s a lot of work happening on so-called “stablecoins” that are pegged to the dollar. It’s still early days but I believe within five years they’ll be in widespread use.

    • Engelo Rumora

      Awesome Chris,

      Just keep at it mate

      It’s still very early days for sure but do your best in immersing yourself as much as you can.

      I don’t know much about tech and type with 2 fingers hehe

      My business partners tho are all tech entrepreneurs that have sold out of many start ups for 7 figures.

      I’m always brushing shoulders with them in San Fran and NYC along with asking very dumb questions.

      Eventually, I picked up a thing or 2 or 3 lol

      Much success

  2. Kole K.

    No Offense Engelo but this is terrible advice, you really should remove this post. I have been in bitcoin for many years and wish people that do not understand the technology would stop giving “investment” advice on crypto currencies. “A lot of people have no clue what they are doing, me included” Why are you giving investment advice on something you do not understand? Everyone wants to be an oracle in this space but fail to educate themselves on the protocol level.

    “ethereum has been built in a much better way than Bitcoin has” How so? Ethereum is riddled with bugs as it is Turing complete which is a big no-no for a protocol that will hold value. Ever heard of the DAO hack? Ethereum’s lead researcher has even stated to not invest in ethereal as it is experimental.

    “Another one that is really big is ripple” ….Ripple is not a crypto currency and the token has nothing to do with Ripple.

    “I’ve heard that bitcoin is not a technology that has been built as well as some of the others”. Bitcoin has the worlds best computer scientists, cryptographers, etc working on it, your statement is ridiculous. Bitcoin has billions of dollars on value stored on the chain for a reason: it is secure, immutable, decentralized, and works exactly as it was designed.The base layer protocol must be simple and secure, the layers built on top may do as the developer wishes just as the internet works.

    • Engelo Rumora

      Thanks Kole for your comment Kole,

      My apologies that you didn’t find it useful.

      I was merely trying to stress a more “simplistic opinion” on crypto investing.

      Never forget that as smart as you think you, there is always someone smarter.

      Thanks again and have a great day

      • Kole K.

        Yes the names of some of those people include Nick Szabo, Peter Wullie, Peter Todd, Gregory Maxwell, Adam Back, Hal Finey, Matt Corallo, Luke-Jr, Eric Lombrozo.

        Guess what? They all contributed code to bitcoin. Code dictates a sound protocol, not marketing and memes.

  3. Bart H.

    In all labor there is profit (Proverbs 14:23). Investing in bitcoin is like saying ‘I want to invest in the internet!’ Okay what company owns the internet? No one company does. So what company owns bitcoin? No, bitcoin is not a company, but a technology. People make profits, not technology. Technology is only a tool for people to use to make money, but only the labor of people in businesses make profits. Is bitcoin tied to the labor of people? No, there is no labor involved, so how can you invest in something that is not tied to people working in a business like you can with stocks?
    Warren Buffett once said as an investor it is wise to be ‘fearful when others are greedy and greedy when others are fearful’. This holds true with bitcoin.

    • Christopher Smith

      Interesting I saw Buffet and they asked him about it, and he said “I just don’t see the value in it.” Not that Warren can’t be wrong, but I question where this magical value is myself. I see the technology and I understand there could be some modest element of value to it, but what I see in the markets seems to look more like the greater fool theory as its best as opposed to anything based upon real substantive value.

    • DJ Scruggs

      Bitcoin was the first monetizable protocol. All previous protocols, including the HTTP protocol you use to access this site, are free.

      It remains to be seen whether it will work over the long term, but remember that only a few hundred years ago the very idea of insurance was absurd.

    • Engelo Rumora

      Thanks Andrew,

      I’m invested in Stellar Lumens.

      Bought in late last year just before the rise.

      Also, we are in the process of doing our own ICO.

      I truly have some great people on board and I’m more of the “real estate guy” and let me tech peeps look after the rest

      Stay very cautious

      Much success

      ps. Check out Kin also. Dirt cheap for a top 100 coin and I predict some movement once they launch

      • Andrew Bergman

        Thanks for the info! I’m in ETH and XRP but looking to branch out. I’ve heard good things about Stellar but have not heard about Kin. I will check it out! I’d be interested in hearing more about your ICO especially if it’s real estate related, and let me know if you are looking for more investors in the ICO.
        Regards!

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