Analysis

I Buy Crypto-Stocks Because Safe Stocks Do Nothing for Me

This month I bought some crypto-stocks for my RRSP (Registered Retirement Savings Plan, or the Canadian version of an IRA).

Bitfarms and Fansunite have been the big winners.

A note about Fansunite: In 2018 I bought it in a private placement as a blockchain deal. It went zombie for more than two years and resurrected itself as a e-gaming platform company.

I left it in there as a crypto-stock but it’s not really anymore. So, sue me.

It’s always better to be lucky than smart.

I bought Ether Capital today. Ethereum has been on a tear all through 2020 and I do not think it’s done yet.

Because investors are “staking” Ethereum so that the beacon chain of Ethereum 2 can launch, a fair amount of the token is getting locked up:
Nearly half-million Ether has been taken off the market for the next few months at the very least, if not for a year.

Now the question you should ask is this: Why I am buying crypto-stocks when I am already up to my eyeballs in bitcoin and Ethereum, and have been for years?

And the answer is you can’t buy bitcoin or Ethereum directly with RRSP funds.

Therefore, I have to buy companies with exposure to crypto.

Now, I used to buy SAFE, TRADITIONAL companies for my RRSP.

But my return on investment for the last-half decade was miserable.

And the COVID swoon in March of this year was the last straw.

If you are going to die on a hill, at least die on a hill you believe in.

The motto for my retirement investing in 2020 has been “buy flaky, buy risky.” It’s working so far.

For now, I leave value investing to Warren Buffett, he is much better at it then I ever was.

DJ

Editor’s Note: I am obviously long in all the stocks mentioned here. Nothing what I write should be construed as investment advice

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