As interest in Bitcoin and other cryptocurrencies heats up due to their recent top billing amongst financial journalists who can never pass up an opportunity to hype the latest cause de jour, a few of our clients have asked our opinion on Bitcoin. While we have no idea if Bitcoin will live up to the hype, we do caution that it is extremely speculative and anyone who invests in it should be prepared to lose their entire investment should it turn out to be the latest tulip bulb fad.
For a thought-provoking and sober counter-perspective to those who believe Bitcoin will replace the world’s sovereign currencies, interested parties may wish to read an article recently published by Advisor Perspectives written by James Rasteh, Founding Partner of Coast Capital, LLC. In his thesis, Mr. Rasteh makes a compelling argument that Bitcoin is an ecological and monetary disaster and is actually worthless. He compares the current craze to the Dutch Tulip bulb mania in the 1630s when one could buy a mansion on the Amstel with a single tulip bulb.
To read the article click here.
Samuel J. Taylor, CIMA®, AIF®, CRPC®