The value of 1 Bitcoin (BTCUSD) rose more than 85% since 1 January 2019, placing it among the some of the year’s top performing financial assets. In fact, a recent report from Bank of America names Bitcoin the single best investment of the last decade.
Despite its successes, critics still advise against investing money in Bitcoin.
“It’s a pyramid scheme,” says Lending Tree Chief Economist. “You only make money based on people who enter after you.
“It has no real utility in the world. They have been trying to create a utility for it for 10 years now. It’s a solution in search of a problem and it still has not found a problem to solve.”
Crypto proponents point to an environment that has evolved favorably since digital currencies hit the mainstream.
Since Bitcoin’s parabolic rise in early Y 2017, we have seen cryptocurrency adoption within some of the world’s largest financial institutions. Even central banks have taken the 1st steps toward implementing their own digital currencies.
Nevertheless, experts say investing in crypto as an asset class is purely speculative.
“I own several cryptocurrencies. I got into them in late 2016 and early 2017. I bought them equal weights with a specific thought: ‘there’s something here, I just don’t know what it is,’” says Bruderman Asset Management’s Chief Market Strategist.
“I own 5… if I am lucky one of them will become an all-Star.”
He says that he invested in cryptocurrency not only to grow his portfolio, but also to learn about the technology behind the blockchain.
“I don’t think you go into it thinking that you’re going to become a billionaire or a millionaire as a result of it. You go into it very soberly understanding that you can lose all of your principle and that this is purely speculative,” he told the financial press.
“For me, it’s also a way to get educated on it… to me, if you want to learn about it, you’ve got to own it because that’s the only way you’re going to truly educate yourself and pay attention.”
Have a terrific New Year Holiday Week