When I managed investments for clients, I used a waiver letter when a client insisted I purchase an investment that in my professional opinion was not prudent. To me, a waiver is required for cryptocurrencies. This is not advice. It is a thought piece on a complex topic in a few words.

What do you own? Virtual currency created by a computer that conceives cyber-coins based on algorithms.

What forms the foundation of cryptocurrencies’ long-term growth potential? Nothing. Supply and demand only set the price. Technically, supply and demand establish a market-clearing price where quantity supplied is equal to quantity demanded. While supply and demand establish all prices in the consumer world, typically, some consumer entity provides a basis for an over or under valuation. Without an entity to provide a valuation in the cryptocurrency realm, supply and demand are all you have; emotion determines its value. Emotion is not a sound investment foundation.

How does cryptocurrency fit in an investment objective and strategy? It’s play money. Its value will be all over the map and investors in this unregulated and emotion-driven market can lose it all.

What is the motivation to buy this currency? I figure greed. It’s a lottery chance to strike it rich. Pure speculation. Watch for the sharks who will sell trading schemes promising wealth. Investor greed or fear is like blood in the water to the sharks. For the motivation to be legitimate…like for anticipated strategic growth…you would have to have data and analysis to base a value and the potential for capital appreciation.

Which version of cryptocurrency will prevail or does it matter? Who knows? I don’t want the Beta version; I hope I pick the VHS version. Oh, both lost to streaming.

The anonymous nature of the currency and its use by bad actors contributes to its amoral and specious nature in my book.

Some of you will call me a Luddite. As long as there are more valid, proven instruments to manage our financial affairs, why would I use something based on…hope?? If you were responsible for someone else’s money, you would want more validation for your actions.

But if you insist, here’s your waiver.