Avoid Currency Trading

Andrew Wilkinson shares his skeptical view on cryptocurrency and currency trading, particularly for tech entrepreneurs. He believes people should stick to what they know and understand rather than speculating on currencies.

Key Points:

• Fundamental View on Currency Trading:

  • If someone pitched him on British pound sterling trading, he'd question why a tech entrepreneur is currency trading
  • Believes bitcoin is essentially currency trading
  • Advises entrepreneurs to "buy great businesses" and "do the thing you know"

• Crypto Market Observations:

  • Notes that crypto prices haven't reacted to inflation as expected
  • Views the FTX collapse (crypto's #2 player) as severely damaging to crypto's reputation
  • Compares FTX collapse to "JPMorgan going out of business suddenly"

• Investment Philosophy:

  • Prefers waiting and watching rather than jumping in early
  • References Amazon as example: "if you missed Amazon you had until 2010 to invest in it"
  • Believes there's plenty of time to wait and watch great businesses develop

• Personal Strategy:

  • Has "fully steered clear" of crypto investments
  • May invest in crypto businesses eventually but is "waiting for it to play out more"
  • Emphasizes patience and observation over quick speculation

• Risk Assessment:

  • Sees crypto investment as speculation rather than sound business investment
  • Questions why tech entrepreneurs venture into currency trading instead of focusing on their expertise
  • Advocates for staying within one's circle of competence