The rise of cryptocurrencies like Bitcoin and Ethereum has forced even the most conservative financial analysts to reconsider their views on digital assets. Once dismissed as speculative investments, cryptocurrencies are increasingly being seen as part of the future of finance. A decade ago, the very notion of including Bitcoin in a traditional investment portfolio would have seemed far-fetched. Now, financial experts are beginning to suggest that crypto might hold a place alongside more conventional assets like gold.
For one veteran financial writer, this shift has been a long time coming. “I’m not sure how well this will go down with some of our longstanding readers — particularly those accustomed to my conservative value investing bent. But I have been seriously mulling a weekly cryptocurrency report in the Financial Mail,” he admitted. “Surely it’s overdue? It can’t be long before financial advisers are making a default recommendation of putting 10% of savings into crypto — much like the traditional quota investors were told to reserve for gold. I’m quite certain this crypto hedge might already apply with high-net-worth individuals.”
Indeed, this isn’t a sudden change of heart. The writer can claim to have been one of the first in the local financial industry to take Bitcoin seriously. “Before you accuse me of being a Johnny-come-lately, I can at least claim to have published one of the first serious local financial reports on Bitcoin — way back in June 2011 when I was in charge of the now defunct Finweek magazine.”
At that time, Bitcoin was valued at just $8.85. Although many readers were skeptical, those who took the plunge and invested a modest sum would have seen astronomical returns. “I don’t need to tell you how rewarding it would have been to have put a handful of Bitcoin on your credit card,” he added.
Despite his early recognition of Bitcoin’s potential, the author confesses that cryptocurrencies remain somewhat of a mystery to him. “Personally, I still battle to get my head around cryptocurrencies, even though I have spent hours with experts who explained the intricacies of blockchain and other curious mechanisms,” he said. But the allure of crypto proved too strong to resist. “Despite the adage never to invest in something you don’t understand, I recently — albeit reluctantly — took a small punt on cryptos.”
His crypto portfolio includes a diverse range of coins, from Bitcoin and Ethereum to Solana, Litecoin, and XRP. “Some youngsters at the tennis club advised me (not so politely) to dig into ‘really sick’ crypto offerings such as Tron, Cardano, Ton, and Chiliz,” he noted with amusement. “I even took a much-maligned meme coin or three (yes, I have the dreaded Dogecoin).”
Surprisingly, this venture into cryptocurrencies has yielded some early gains. “Avalanche — where I invested a princely R500 — was up 13% at the time of writing, Fetch.AI 11%, and Pepe almost 10%. I have high hopes for Shiba Inu — a lesser pedigree of Dogecoin — where I forked out the equivalent of the price of a padel game and got almost 3 million coins in return.”
While the author remains cautious about making any grand plans based on these short-term gains, he admits that his foray into crypto has been entertaining. “Quite honestly, it’s the most fun I’ve had since betting against the Proteas in every major cricket tournament.”
The ongoing curiosity surrounding cryptocurrencies continues to grow, with more investors, both young and old, exploring the potential of digital assets. Though the road ahead is still uncertain, there’s no denying that the world of Bitcoin and its contemporaries is impossible to ignore. As the financial world evolves, more traditional investors are beginning to keep an eye on this new frontier — watching carefully, if not yet ready to fully commit.