Reasons why I dislike Bitcoin and my preferred alternative investment with no dividends.
People often ask me about my thoughts on cryptocurrency. Surprisingly, I don’t dedicate much time to thinking about it. This comes as a shock to many, considering the widespread popularity of crypto. However, recent market trends show a significant downturn in Bitcoin and other cryptocurrencies, leaving many investors regretting their decisions.
My reticence towards Bitcoin stems from my focus on dividend income, a crucial aspect of investment that crypto assets lack. Cryptocurrency also presents a level of volatility that we prefer to avoid. When seeking exposure to the technology sector, we turn to closed-end funds that hold high-quality tech stocks instead. These funds not only provide exposure to top tech companies but also offer attractive dividends, with some yielding over 7.7%.
While crypto enthusiasts often speak of the vast riches that can be accumulated through well-timed crypto investments, the reality is that any well-timed investment can lead to significant gains. However, relying on luck for wealth accumulation is not a sustainable strategy. Investing in meme coins, NFTs, or other speculative assets can yield profits, but it is not a reliable method of wealth creation.
Despite the bullish sentiment towards crypto earlier in the year, with the President of the United States endorsing it and reports of significant profits earned by the Trump family, Bitcoin’s performance has been lackluster compared to the overall market. While investors drove up the value of Bitcoin in 2025, the cryptocurrency has experienced a year-to-date decline, unlike traditional assets like stocks.
In contrast, two high-yielding tech closed-end funds, the BlackRock Science and Technology Trust (BST) and BlackRock Science and Technology Term Trust (BSTZ), have outperformed the market. These funds focus on US tech stocks and private-equity plays, yielding 7.7% and 9%, respectively. Their performance mirrors that of the S&P 500 while providing bond-like income, offering investors the best of both worlds.
Despite their strong performance and reliable income, these funds are trading at a discount to their net asset value. This presents an opportunity for investors to capitalize on market inefficiencies and potentially earn higher returns. By following a disciplined investment strategy that involves buying more shares during market downturns and capitalizing on the narrowing of discounts during bull markets, investors can enhance their overall returns.
While crypto trading involves high volatility and zero income, closed-end funds like BST and BSTZ provide steady dividends and lower risk, making them attractive investment options. By focusing on well-established funds with proven track records and high dividend yields, investors can build a reliable income stream while minimizing risk.
As market concerns grow, now is an opportune time to consider investing in monthly dividend funds that offer stable returns and steady income. By assembling a diversified portfolio of monthly dividend payers, investors can benefit from consistent cash flow and capitalize on discounted prices. This strategy allows investors to receive income throughout the year, supplementing their existing dividend payouts and enhancing overall portfolio returns.
In conclusion, although the allure of vast riches through crypto investments may be tempting, focusing on dividend-paying assets like closed-end funds provides a more reliable path to building lasting wealth. By strategically allocating investments to high-yielding funds and taking advantage of market fluctuations, investors can generate consistent income and achieve long-term financial success.
