Advisors Eye Bitcoin With Curiosity, Caution
While some advisors are keeping a close eye on the evolution of bitcoin and other virtual currencies, they’re still hesitant to recommend them to clients, reports Financial Advisor IQ.
These cryptocurrencies are being traded without government backing or support of any hard assets,” Neil Waxman, managing director of Capital Advisors, tells the publication. “And it’s important to realize that Bitcoin is almost seven times more volatile than gold – you can easily lose 50 percent of your money at any time.”
At the same time, Waxman says issuance is accelerating and major clearinghouses are advancing the blockchain technologies that underpin digital currencies, according to Financial Advisor IQ.
None of our clients are seriously considering trading in Bitcoin right now,” he is quoted saying. “But a blockchain technologies improve and more stakeholders validate thee types of digital networks, cryptocurrencies may find a place in strategic investment portfolios over time.”
The price of bitcoin recently surged to more than $4,000, generating lots of headlines and interest in the digital currency.
Massachusett-based advisor George Gagliardi tells the publication that in half a decade virtual currencies will be mainstream investments, but he cautions they’re still in a relatively early stage of development. He notes that hackers recently broke into cell phones to steal virtual wallets.
“I tell my clients that although the potential is great, bitcoin is like trying to pick an internet winner in 1996 – this market is purely speculative at this point,” he is quoted saying.
Advisors Eye Bitcoin With Curiosity, Caution, Aug. 29, 2017 4:42 p.m. ET
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