What’s the go with crypto: Is Bitcoin still a good investment?

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Around the start of 2017 as a bright-eyed, [AGE REDACTED]-year-old, I remember stumbling onto an article discussing a then relatively new cryptocurrency called Ethereum. The article made a bunch of claims about how it and various other digital currencies were going to revolutionise the internet and entirely change the way we interact, transact and work online, which sounded pretty cool at the time.

Anyway, obviously none of that happened and almost certainly never will (despite constant assurances from crypto fanatics), but what did happen since 2017 is the price of Ethereum went from $20 to about $4500. Similarly, the price of Bitcoin, the most well-known cryptocurrency, jumped from being worth about $2000 to $85,000 today, great news for anyone who got in when it was cheap. For a detailed description of what cryptocurrency is, check out this Explainer I wrote a while back.

Fast-forward to today, and the launch of new crypto products, such as Australia’s first exchange-traded fund with Bitcoin as its underlying asset, tends to come with far less hype than say the heady days of non-fungible tokens and Dogecoin. And the major cryptocurrencies (Ethereum, Bitcoin), although still volatile, tend not to experience the same wild price swings of even a couple of years ago − even if there’s still a bunch of smaller, useless “meme coins” operating effectively as pump and dump schemes trying to entice unfortunate investors.

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What’s the problem?

For genuine investors who are interested in the crypto space but know little about it, the confusing and unregulated industry can pose a daunting barrier to entry. It’s also clear that the heady early days when investors could 100x their money are, largely, over.

The recent launch of Bitcoin exchange-traded funds (ETFs) in the US and in Australia, which track the price of the digital currency, has meant it has increasingly started to act like a “normal” asset, if not a good deal more volatile. However, this also means crypto is much more accessible, making it much easier for an everyday investor to purchase.

What you can do about it