BitCoin sucks. A deep dive into why cryptocurrency is bad from someone who tested the waters.

So I took a dive into crypto this year just to see what it’s like. It’s a hot topic, I know, but I do get asked “Should I invest in BitCoin”, and I thought I’d test it for myself before proclaiming the disadvantages of BitCoin and why cryptocurrency is bad. 

Yes, everyone is doing it (even I’m doing it) but I still don’t get it. When it comes to the pros and cons of BitCoin, I can’t figure out how it’s good at anything. 

Now don’t get me wrong, do I wish I bought it 5 years ago and was a billionaire right now? Yes. But I can’t figure out any reasons other than sheer momentum that it makes sense as an investment. 

If Cryptocurrency is bad, why did I buy it?

Mostly just to try it. Some online stores offer hefty discounts if you buy in crypto. To the tune of 25% off. I’m pretty sure they’re doing some illegal stuff with that money, but that’s not really my problem. My hands are clean. 

I’m also secretly a big proponent of blockchain – not as an investment but as an idea – but that’s totally different from cryptocurrency. (Blockchain = non-centralized way to securely track data like ownership, cryptocurrency = money based on blockchain.) 

In any case, after just one bitcoin transaction, I’m very much a crypto bear. 

If you’re interested in real recession-proof investing, read about Farmland Investing – why it should be the secret sauce to your portfolio.

Besides, all of the hype behind BitCoin and cryptocurrency doesn’t hold up once you take a closer look.

Fact #1. Bitcoin can’t take over automated payments because it’s too damn slow. 

When it comes to the disadvantages of BitCoin, this one drives me nuts the most. Bitcoin blocks take forever to compute. Literally, a transaction takes 10 minutes to an hour to compute and verify! And it’s not getting better, it’s getting worse because BitCoin was set up to have increasingly difficult mine operations. 

You’re not using BitCoin to buy a slice of pizza if it takes an hour to check that you actually paid! My transaction wasn’t going to be vetted for 6 hours! When you’re weighing the pros and cons of BitCoin, this is definitely a point for why cryptocurrency is bad. 

6 hours?! That’s too slow!

Okay, so there are other types of crypto coins that are faster to compute – but then why bother? Insanity! 

Fact #2. Transaction fees are brutal and random. 

So you already know I hate transaction fees and fees in general. But you know what’s even worse? When they’re random. 

My purchase had a $5 transaction fee, and the fees are on-demand with surge pricing meaning they spiked as high as $60 per transaction this year! That’s nuts. I actually ended up buying a special type of coin called a BitCoin Cash Coin to avoid the super-high fees, but it’s not exchangeable with BitCoin which just caused a whole mess. 

Even worse, you have to tack on that transaction fee – which is a random number – to your purchase amount, otherwise, your payment gets rejected. And if you round up to be on the safe side, they just keep it. I don’t like having to do extra math when I’m buying something. No, it’s not complicated, but it is annoying. And yes, I managed to screw up and had to redo my transaction. 

Just what I need when buying something. A calculator.

I even tried to use BitCoin for international money transfers (mainly CAD to USD), but it still sucks. My contractors wouldn’t take it. 

I prefer Transferwise. It’s faster and the fees are smaller. 

Fact #3. The government likes controlling the money. 

I understand the rosy view of taking back control of the money supply from “the man.” But the man has a lot of power and they can ban it. In fact, I don’t see why it wouldn’t get banned if it actually gets big. Blammo, market destroyed. The US government has banned similar things before (like gold in the 30s,) so why wouldn’t they do it again?

Fact #4. It’s not finite. 

Some people treat BitCoin as an investment like gold, since it has a limited supply (like gold) making it inherently valuable. People also argue that it’s like gold as an inflation hedge. 

But I don’t buy it. 

There’s no special incentive to stick to BitCoin as an investment over any other crypto. There’s DogeCoin, Etherium, BitCoin Cash, LiteCoin, etc. etc. etc. These are all equally viable as places for your crypto money. BitCoin has momentum, but it’s not unique. 

Look at my checkout. I had 14 crypto choices and the company said if I wanted to use another, that’s fine too. Does that look like a finite pool to you? Not at all.

Making an infinite number of coins causes crypto inflation – and the cookie crumbles. 

Think Bitcoin is unique? It’s not.

So if BitCoin and Cryptocurrency is bad, what is it good for? 

Fun gambling investing. 

Seriously, the biggest use of crypto is that it’s fun to gamble on. People enjoy it. Elon Musk tweets about it. There are cool names and valuations, and it makes you feel hip to tell your friends you own some. 

If you’ve bought some BitCoin as an investment, I hope it does well for you. But as far as being useful, I’m drawing a blank. Maybe tax evasion or avoiding getting tracked for big purchases? 

But if you’re a law-abiding, normal person I still don’t get it. So I’m out. Crypto’s dumb. 

TL;DR – Why cryptocurrency is bad

  • A main disadvantage of BitCoin and crypto is It’s not really useful. The transactions are too slow, and the fees are not realistic. 
  • Another con of BitCoin is the government does have the power to take over.
  • Cryptocurrency is also not a finite resource despite some claims. 
  • If you’re wondering “should I invest in BitCoin” just understand you’re relying on momentum and hype

The Best Way to Take Charge of your Money

You likely read a lot about money. But did you know you probably missed the real first step to taking control of your finances? Make it easy! Everyone should start by making assessing thier finances easy and the easiest way to do that is with Personal Capital (it's free!). It automatically:
  • Aggregates all of your bank and investment accounts
  • Adds up your fees
  • Points out your cash flow
  • Estimates your retirement readiness
You could not sign up but then everytime you want to think about money, you need to log into ALL your accounts, mentally tally it up, maybe even write it down. THEN you can start thinking. I'm not a lazy person, but when something is harder I do it less. Make your finances easier so you can spend your mental energy in the right places. It's well worth the few minute signup!

Mr. FYFE's Top Tips to get into Financial Shape

#1 - Buying Managed Farmland. Real estate is awesome. But what is even more awesome when you have money, is real estate that is totally uncorrelated to normal financial markets. Meet easy farmland investing with hands off >12% returns! I recommend Acre Trader because it's awesome.

#2 - The news is bad for you. It takes up too much time, makes you dumb, and stresses you out. You should spend that time on other things. Limit yourself to JUST 1 newsletter per day. I recommend the FREE MorningBrew which I review here. Make sure you confirm the subscription!

#3 - Take a course about real estate investing. Real estate is an AMAZING vehicle to build wealth quickly and build income long term. I tested a few to find SparkRental's course to be king.
Sept 2020 Update: I temporarily have a MEGA discount ($500 off) for my readers who take the course. #WorthIt. (Buy button appears near the end of the video which you can fast forward/skip if you want.


Leave a Comment