I have often been asked questions about crypto investment. The following analysis aims to provide an elegant response.

In the world of traditional investments, the essential question is not only whether to enter, but also when to exit. Any prudent investor defines from the outset an exit strategy: price points, time horizons, risk levels.

But in the case of cryptocurrencies, this logic falters. Here emerges what we may call the Crypto Paradox:

If you have rationally decided to invest because you trust in the fundamental role and future of this technology, then there is no rational reason to sell, except for the need to spend.

Premises Link to heading

  1. Basic assumption: Crypto investment is rational under the condition of absent arbitrage opportunities, supported by the belief that these assets will retain or even increase their value over time as a trusted digital store of value.
  2. Logical inference: If you expect fiat currency — whether euro, dollar, etc. — to depreciate over time, converting crypto back into fiat becomes illogical.
  3. Consequence: The investment has no exit except through consumption, when you need to pay for goods or services.

About risks Link to heading

In traditional investments, there are objective reasons to exit:

  • weaker financial results,
  • a declining market,
  • the end of an economic cycle,
  • poor company management.

In crypto, however, these reasons do not apply:

  • There is no central management that can fail.
  • There are no quarterly reports that can be better or worse.
  • It does not depend on production, profit margins, or economic cycles in the classical sense.

Thus, most of the classical arguments for an exit vanish in the context of crypto.

Conclusion Link to heading

The Crypto Paradox lies in the contradiction between classical investment logic and the particular nature of the digital asset:

  • In traditional systems, assets are bought and sold depending on cycles, results, or trends.
  • In crypto, if the basic premise holds, selling for fiat is illogical.
  • If this conclusion – the idea of no exit – does not satisfy you, it in fact represents the implicit answer to today’s investment decision.