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#Bitcoin expert finance planning professional#

And recent regulatory changes in the UK provide stark evidence as to the concerns for investors. It’s no surprise that many governments, including South Korea, China and France are clamping down on cryptocurrencies such as bitcoin. ‘Mining’ – where bitcoin transactions are digitally verified and added to the public ‘blockchain’ ledger – is highly time-consuming, whereas equities and bonds can be sold in a fraction of a second.

Transferability: it takes a long time and huge efforts to buy or sell (particularly to sell) bitcoin.

The private keys and digital wallets are inherently vulnerable and intermediaries charge enormous amounts to deal with that basic safety issue. One astonishing statistic is that, at the time of writing, 20% of bitcoin has been lost, unrecoverable. This is unlike central bank digital currencies (CBDCs) which are regulated. With unregulated transferable cryptocurrencies such as bitcoin there is no central bank or public authority issuing or guaranteeing the asset.

Safety: other investments have custodians, registries, etc.

Should bitcoin be worth US$10,000, US$100, US$1m or 10 cents? There is no measurement to help make that decision. There may be scarcity, because only a limited number of bitcoins is produced, but scarcity does not create value unless the product has an economic purpose. This is unlike equities which can be valued by their earnings or cash flow, bonds by yield, property by rental income and location and commodities by their industrial usage.

Valuation: bitcoin has no proper valuation method or underlying value.

To us, any suitable investment requires a valuation methodology, safe custody and easy transferability. But do investors understand the risks and does the underlying technology even matter? Bitcoin investing - the risks Its meteoric rise has drawn many investors, with some believing that the underlying blockchain technology (blockchain is a digital ledger in which transactions made in cryptocurrencies are recorded chronologically and publicly) could become one of the most powerful tools ever given to civilisation. I have read and understood the legal information and risk warnings.īy clicking the 'Accept' button, you agree to abide by the terms and conditions listed below.īitcoin is the best known of the 1,800-odd cryptocurrencies.

#Bitcoin expert finance planning professional#

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Information is accurate as of May 22, 2023.Please note these are subject to change at any time. But if you're more interested in diversifying your portfolio and profiting from another potential bull crypto market, and don't necessarily want to trade crypto, a bitcoin ETF is a good place to start.ĭaria Uhlig contributed to the reporting for this article. If you plan to use bitcoin for purchases, or like the idea of deregulated finance, you may want to hold some bitcoin. Neither investment is "better" than the other, per se.Is it better to buy bitcoin or bitcoin ETFs?.

When you invest in futures, you are speculating on the future price of an investment – whether that's grain, oil or, in this case, a crypto like bitcoin (BTC). Bitcoin ETFs typically represent bitcoin futures or companies with stakes in crypto.Some investors may feel that makes bitcoin ETFs a safer investment than BTC. Although bitcoin prices are highly volatile, futures and ETFs are regulated by the SEC, while bitcoin trading is not.However, any of the bitcoin ETFs on this list could provide a solid ROI over the long term. During a crypto winter, your best bitcoin ETF investment might be ProShares Short Bitcoin, BITI.