In a world where Christians generally shy away from capitalism, greed and even a sensible approach to investment — all in the name of forsaking the love of money — I find it surprising that there is so much hype around Bitcoin and similar Cryptocurrencies in many Christian circles.
There appears to be a big question being asked in Christendom today. Should a Christian invest in Bitcoin?
To be fair, there are many Christian platforms on the internet that call out the dangers of Bitcoin. I have seen the recent spate of Crypto-mania described as the “Bitcoin Cult”. However, there are many Christians who take the opposite view and see Bitcoin as a positive force in the world, built on an ethos that aligns with Christian values, according to their view of the world.
One thing these opposing views appear to agree on; they both elevate Cryptocurrencies, and Bitcoin — Crypto’s poster-boy — to a mystical status that transcends the things of this world. They both contend that Bitcoin wields some sort of spiritual power beyond the mundane. In the minds of believers on both sides of this fence, Bitcoin represents a force for change in this world. The only thing they disagree on is whether it is a force for good, or a force for evil.
So… should a Christian invest in bitcoin?
I am inclined to take a slightly different view with regards to this question. I simply don’t believe that Bitcoin is more of a force for good or evil than any other currency in this world. Furthermore, it is no more worthy of our consideration as an investment vehicle than any other from a Christian perspective.
Cryptocurrency is a new asset class. It is not yet well-understood and, as such, it remains a volatile one.
Personally, I don’t invest in Bitcoin or any other Cryptocurrencies. However, my reasons are financial, not spiritual.
First — Cryptocurrencies are Speculative
For instance, when Elon Musk buys a bunch of Bitcoin, the price suddenly sky-rockets — and when he sells half of his investment a few months later, the price drops through the floor. Everybody is speculating as to whether the price will go up or down, and nobody gets it right all the time. This is more akin to gambling than investment, in my opinion.
Second — Bitcoin has no Underlying Value
By way of example, if I buy shares in a business, and then that business goes bankrupt…
The administrators will sell off any assets held within that company. This could include property, computer equipment, office furniture, company vehicles — the list is endless. Once everything is sold off, outstanding debts are paid, and the dust settles, the business will distribute any remaining money from the sale of those assets to its shareholders. In other words, I have a reasonable chance of getting some, if not all, of my money back. Not so with Bitcoin and its crypto counterparts.
Third — Bitcoin Offers no Ongoing Revenue Stream
If I invest in property, I get monthly income in the form of rent. If I invest in the stock market, I can expect dividend payouts once or twice each year, regardless of whether the share price goes up or down. Conversely, when I buy Bitcoin, it just sits there. It doesn’t earn me any rent or pay out any dividends. In fact, the only way I can get any money back from my Bitcoin is by selling it.
Some might argue that the same can be said for commodities, like gold and silver. Fair enough but then, personally, I don’t invest in those either — and for the same reason.
My personal investment goal is to own assets that produce a passive income. I do this so that I have the time to focus on working to further God’s kingdom rather than working sixty hours a week just to make ends meet. Neither Bitcoin nor the commodity asset classes above support that objective.
However, this only answers the question, ‘Should I invest in Bitcoin?’
It still fails to answer the question, ‘Should a Christian invest in Bitcoin?’
Should a Christian invest in bitcoin?
In conclusion, I see no compelling Biblical reason why a Christian should or should not invest in Bitcoin or similar offerings. Rather, the question distils down to a simple financial one; does the investment make sense for the investor?
In my opinion, Cryptocurrencies like Bitcoin have the following drawbacks from an investment perspective:
- They are speculative
- They have no underlying value
- They offer no ongoing revenue stream
And, for those reasons — I’m out!
Don’t take the above as financial advice. I have merely outlined the reasons why I personally do not invest in Cryptocurrencies. Other investors may have different goals and different opinions. If you are considering Crypto or any other type of investment, please seek advice from a qualified professional.