Why Rezny Wealth Management Steers Clear of Cryptocurrency Investments

By Brian Rezny, President of Rezny Wealth Management – A Fee-Only Fiduciary Money Manager

At Rezny Wealth Management, we prioritize sound, strategic investing that builds lasting wealth through assets with real, tangible value. That's why we don't invest in cryptocurrencies like Bitcoin. In our view, it's pure speculation—essentially buying nothing with no intrinsic value. While blockchain technology holds promise as a tool for global efficiency over decades, Bitcoin and its ilk offer no such substance. Anyone can launch a new cryptocurrency, with thousands already in existence and more emerging daily, diluting any perceived scarcity. Meanwhile, Wall Street's rush into crypto is largely self-serving, enriching firms through high fees while exposing investors to unnecessary risks. This article breaks down our reasoning with expert insights and stats, urging investors toward quality portfolios over gambling. As always, this is for educational purposes—consult a fiduciary for personalized advice.

The Illusion of Value: Why Crypto is Pure Speculation

• No Intrinsic Value: Bitcoin lacks any backing, cash flows, or residual worth, making it unlike stocks, bonds, or real estate. Experts argue its "scarcity" is artificial and doesn't create real value, comparing it to speculative bubbles rather than assets like gold. 

• Volatility as a Red Flag: Extreme price swings undermine crypto's reliability as a store of value or inflation hedge. Financial pros highlight how this makes it unsuitable for serious investing, with fluctuations often leading to significant losses if timed poorly. 

• Expert Criticisms Abound: Institutions like Brookings and AXA IM call Bitcoin "brutal" in its lack of fundamentals, labeling it non-investable due to no usage value and unreliable predictions. Hargreaves Lansdown, managing $225 billion, states it's "not an asset" with zero intrinsic value. 

• Gambling Over Investing: Critics from Barnett & Waddingham and others describe it as purely speculative, driven by hype rather than economics, echoing warnings from Charles Schwab about high volatility risks. 

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Statistical Insight: As of November 2025, over 17,000 cryptocurrencies exist, with estimates of up to 37 million unique ones created historically, highlighting the ease of entry and lack of barriers. This flood underscores why scarcity claims fall flat—new coins dilute the market daily.

Blockchain's Promise vs. Crypto's Hype

• Tech Innovation Separate from Tokens: Blockchain could revolutionize supply chains, finance, and data security worldwide, but owning Bitcoin doesn't grant you a stake in that tech—it's just a digital token riding the wave.

• No Monopoly on Blockchain: Major companies like IBM and JPMorgan use blockchain without crypto involvement, proving the technology's value stands alone, not tied to speculative coins.

• Crypto's False Equivalence: Proponents hype Bitcoin as "digital gold," but experts counter that it lacks gold's historical utility or physical backing, making it a poor comparison. 

  
  

Wall Street's Bandwagon: Profit Over Prudence

• Self-Enrichment Motive: Wall Street firms embrace crypto for new revenue streams, like ETFs and trading desks, especially after regulatory shifts under pro-crypto policies. 

• High Fees Drain Investors: Many Bitcoin ETFs and funds charge management fees from 0.21% to 1.5%, with some products reaching 2-4% when including transaction or operational costs—far higher than low-cost index funds, benefiting providers more than holders. 

• Appealing to Hype: With spot Bitcoin ETFs approved, firms push products to attract investors, but this often overlooks risks, as noted in regulatory warnings about crypto's volatility. 

  
  

The Real Risks: Speculation Leads to Losses

• Widespread Investor Losses: Studies show most retail crypto investors are underwater, with trillions lost since peaks; for instance, over $2 trillion evaporated post-2021 highs. 

• Timing Traps Many: BIS data reveals three-quarters of users bought Bitcoin above $20,000, locking in losses during downturns. 

• Scam Epidemic: In H1 2025 alone, Americans lost $3.5 billion to crypto investment scams, with median losses at $3,250 per victim, per FTC reports. 

• Psychological Toll: Stories of $200K+ losses highlight market psychology pitfalls, where hype drives buys and fear sells at lows. 

Sound Investing: Choose Value and Growth Over Gambles

• Quality Portfolios Win: Focus on assets you can value—companies with earnings, dividends, and growth potential—offering real opportunities to compound wealth sustainably.

• Avoid Speculation's Pitfalls: As we've discussed in prior articles, speculation often leads to two-thirds or more of capital lost over time, while strategic investing preserves and grows it.

• Long-Term Strategy Key: Diversified, actively managed portfolios outperform fads, emphasizing fundamentals over fleeting trends.

Always ensure your money is managed properly, effectively, and actively. Trust only a fee-only fiduciary money manager like Rezny Wealth Management—anything else introduces conflicts, mediocrity, and a "set it and forget it" mentality that could cost you dearly. We're here to help you navigate these decisions for true long-term success.

General informational content only. Not tax, legal, or investment advice. Consult a financial professional before making investment decisions. Conduct due diligence. All investments involve risk, including potential loss of principal.