Crypto Hodlers Change Their Investing Mentality
Trends
February 22, 2023
The crypto winter may have hurt people’s perceptions of the asset — but there’s no shortage of believers. According to a Philadelphia Fed survey, 39% of crypto owners say they’ll likely buy more.
This may stem from their disbelief in being able to “make it” off their salaries and traditional assets alone.
- Per WSJ, many young Americans are choosing crypto over real estate, higher education and the stock market.
- They think they have more to gain from crypto than traditional assets or the burden of student debt.
One believer is 30-year-old Jordan Johnson (interviewed by WSJ). Despite getting a six-year business degree, his salary stalled at $55K.
- In Jan. 2022 (three months after the market peaked), he put over $90K into crypto via savings, loans and selling his house.
- From then, $BTC fell 60%. He was also invested in TerraUSD and Luna, which collapsed to zero.
That should scare him away, right? Not exactly.
It did change his mind on how to invest. Now, Johnson is only investing in bitcoin with a longer horizon.
The case against crypto: FirstGen Wealth’s founder Valerie Rivera doesn’t think it “belongs in someone’s portfolio” — saying the price swings are too much for everyday investors.
She says if you must buy, keep it to 5% of your net worth and be prepared for it to vanish.
