Letter: Bitcoin or Tesla, it’s gambling. Nothing else

I guess that most of those suddenly discovering an enthusiasm for cryptocurrency or Tesla are gambling, not investing, whether they admit it to themselves or not (Charts that Count, Video, FT.com, January 14).

Unless they truly intend to leave it for the long term, converting some much-maligned “fiat” currency into bitcoin or buying into Tesla at a price equivalent to the aggregate valuation of Volkswagen, Toyota, Nissan, Hyundai, GM, Ford, Honda, Fiat Chrysler, Peugeot, and Renault put together, is like placing a bet on red or black and hoping that it comes up.

It may be rational to buy now, watch the hype continue and sell to someone else, a “greater fool” who has joined the party later than you. But this is gambling, not investing; fine, but best not to kid yourself it’s anything else.

Faisal Sheikh
Managing Director, Monmouth Capital,
London W1, UK

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