Who do you trust?

• The SEC warns against securities...
• Financial articles write 4 or 5% as yield as high
• What is the better play? Securities or cryptocurrencies?

The 2^nd point of a list of cautionary words about crypto stands out. Investments in crypto asset securities can be exceptionally risky and are often volatile.

^Source

^Source

^Source

They tout significant risk as an inherent issue within crypto by highlighting these issues:

• Volatility and illiquidity
• A company's bankruptcy potential
• Unpredictability

These kinds of alerts have the opposite effect intended, at least to healthy skeptics. How can the SEC suggest these claims when their very institutions crumple around them? In short, their suggestions beg much doubt amidst the uncertainty of the economy's future and inflation fears.

Proponents might suggest these are straightforward and clear, as well as insured. The Journal does discuss the plausibility of other short-term investments for cash.

Yet and still, high net worth individuals suggest a portion of funds still go to crypto.

If Not, Crypto Then...

The Wall Street Journal, almost as if in response to growing concerns around another global bank issue offered some insights as to other alternatives for your dollar.

These higher paying alternatives include but aren't limited to:

• hi-yield savings accounts
• money market funds
• CD's
• short-term Treasurys

After some assurances from pundits, the Journal highlights the returns sum up to 3 to 5%. 3 to 5%. For legality and safety, a risk-free* return doesn't even combat the cost of inflation- which is 6.04% at the moment.

In addition, these vehicles aren't without their flaws either. Money-market funds experienced periods of stress during the pandemic and the financial crisis of 2008. Certificate of deposits (CD's) lock in rates and cannot be adjusted, in the event of a potential increase or decrease. Limited downside and upside.

One such pundit assures readers of the Journal, the following:

"There's no real penalty to holding cash these days."

Not quite.

One cost comes to mind. That is, opportunity cost.

Is the offer of 3 to 5% enough? Are governing bodies protecting the consumer?

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*_{Apparently not.}