Fri Feb 28 2025, by socialcapofficial

Introduction

Here are three reasons I would never invest in crypto. Come at me, bros. I'm Tyler, a former financial advisor and portfolio manager.

Now I make financial content for free so you don't have to pay for it.

1. It's Not an Investment

An investment, by definition, is expected to generate cash flow via dividends, interest, or rent. Crypto produces none of these, making its value entirely dependent on market sentiment and future buyers.

2. It Lacks a Fundamental Valuation Model

Stocks can be valued through company earnings, real estate on rental income, and bonds on interest payments. Crypto lacks the ability to do… well, all of those things, meaning its price is based purely on supply and demand, AKA, speculation.

3. It is Not a Store of Value

And if you think it is, I do not think that means what you think it means. If I deposit $100,000 in a savings account and at day's end it's only worth $70,000 … Uh… where did my value go?

So, enjoy your tulips, my tulip bros. And I do truly hope this works out for all of you.

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