What’s the Buzz with Bitcoin?
Look before you leap.
Hardly a day goes by that the topic of bitcoin or other cryptocurrency assets doesn’t come up in meetings with clients and prospects or from friends and relatives who want to know, “what all the buzz is about?”
The message is the same, regardless of who’s asking. Cryptocurrency is not a currency at all. It’s a speculative asset class that is not appropriate for everyone. Only people with a high-risk tolerance should consider cryptocurrency assets.
Like other alternative assets, cryptocurrency can be illiquid at times, and its current values may fluctuate from the purchase price. Cryptocurrency assets can be significantly affected by a variety of forces, including economic conditions and simple supply and demand.
While cryptocurrencies are speculative, it's important to point out the markets appear to have matured over the past few years.
If you are interested in one of the cryptocurrencies, a good first step may be to keep an eye on them for some time so you can experience first-hand the fluctuations in price.
If you are comfortable with the volatility and want to learn more, you may find a simple internet search may generate a lot of information. But be careful. It may be helpful to stick with content that’s created by well-known publications.
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
1. CNBC.com, December 17, 2017
2. The Wall Street Journal, December 10, 2020
3. Bloomberg.com, December 7, 2020