Cryptocurrency vs. Dividends: Why I’m Still Betting on the Future (And Not Just the Payout)

Silivere Bakomeza
Feb 1, 2022
4 min read

Updated: 4 days ago

Written by Silivere Bakomeza, Founder of BakoInvest

Most people compare dividend investing to crypto the same way they compare an old paycheck to a new startup. One feels stable. The other feels wild.

But here’s the truth: Both have a place in the financial world. And depending on your goals—one may carry more long-term potential than the other.

Let’s break it down from a long-term investor’s perspective. No hype. No tribalism. Just real insight.

What Are Dividends (And Why Do People Love Them)?

Dividends are cash payments companies give to shareholders—usually from profits. It’s a way of saying “thank you” for holding their stock.

For example:

If you own 100 shares of a company paying a $1.50 dividend, you get $150 a year.
Some companies pay quarterly, some annually, and some monthly.

Dividend investors love this because it feels like passive income. It’s a steady cash flow, often from blue-chip companies like Coca-Cola, Johnson & Johnson, or Procter & Gamble.

You don’t have to sell anything. You just hold the stock—and the checks come in.

But here’s the question nobody wants to ask:

Is that steady drip of cash worth more than the potential upside of high-growth assets?

That’s where cryptocurrency comes in.

The Case for Cryptocurrency: Why It’s More Than Just Speculation

Bitcoin doesn’t pay you a dividend. Neither does Ethereum. And yet, millions of people invest in crypto with no plans to sell.

Why?

Because crypto represents something bigger:

A hedge against inflation
A decentralized financial system
A bet on the future of technology and monetary freedom

When you invest in Bitcoin, you’re not investing for a quarterly payout. You’re investing in a network that gets stronger the more people use it.

You’re betting on a future where:

People can self-custody their wealth
Transactions can be permissionless and instant
Governments can’t print away your savings

It’s not just “buy low, sell high.” It’s “buy early, hold long, and bet on transformation.”

Dividends vs. Crypto: What They Actually Teach You

Dividends teach you discipline, delayed gratification, and portfolio consistency.
Crypto teaches you conviction, volatility tolerance, and independent thinking.

Both mindsets matter. But the lessons are different.

One builds comfort. The other builds courage.

At BakoInvest, I teach long-term investing with a bias toward the future. Not because I hate dividends—but because I want to grow wealth, not just collect income.

The Real Problem With Dividend Investing for New Investors

Let’s do some quick math:

Let’s say you buy $10,000 worth of a stock with a 4% dividend yield. That gives you $400/year or about $33/month.

That’s nice.

But in the early stages of wealth building, you’re not going to retire off dividends. You need growth.

What good is a steady payout if your portfolio isn’t growing faster than inflation?

That’s why many long-term investors (especially younger ones) prioritize capital appreciation first—and consider dividend stocks later.

How I Personally Approach This

I’m not against dividends.

But I’m not spending my life chasing 2–4% yield while the world is changing.

I invest in:

Bitcoin for long-term monetary upside
MicroStrategy ($MSTR) to amplify that thesis (Read why I’m all in here: Why I’m Publicly Betting on Just One Stock)
Acorns for passive investing automation and family accounts (Start with $5 here: Join Acorns)

That’s how I combine conviction with simplicity.

What Dividend Investors Get Right

Consistency
Cash flow
A system they can sleep on

That matters.

But don’t confuse comfort with upside. Some dividend-paying stocks barely beat inflation. If you’re young, you don’t just need safety—you need growth.

You can’t “compound” if there’s no real upward momentum.

What Crypto Investors Get Right

Long-term thinking
Tech adoption
Conviction under pressure

But don’t forget: it’s a rollercoaster. If you don’t understand what you hold, you will panic when volatility hits.

This is why I’ve written posts like:

They’re all plays on the same belief: the system is shifting—and I’d rather be early than “comfortable.”

So… Which Is Better?

That depends on what you want.

If you want a smoother ride and modest cash flow: dividends might fit.
If you’re playing the long game and want maximum upside: crypto could be the better risk.

But if you want both security and scalability?

Start with a base of long-term conviction assets—then layer in cash flow once your foundation is strong.

Final Thoughts

You don’t have to choose “dividends or crypto” like it’s a religion.

But you do need to choose your philosophy.

I’m not chasing yield.

I’m building wealth.

And for me, that means owning assets that can multiply—not just trickle.