Thu 04 March 2021 - Paramount Financial Solutions
Bitcoin - Will it live up to the hype?
We occasionally get asked about Bitcoin and whether it's a good investment. Digital currencies and blockchain technology may have a lot to offer - but that does not mean Bitcoin will be it. Due to extreme volatility, high transaction costs and slow processing, Bitcoin does not cut it as digital cash. But it’s not an asset generating cashflows either, which makes it impossible to value. Key for investors is not to invest in something if you don’t understand it and to recognise that just because Bitcoin has surged in price does not prove its worth. This is the most succinct explanation of what it is and why it's, perhaps, NOT a good investment. Buy it, if you must, but only if you view it as saving you a trip to Crown (while they're still open!)
To read the article, click here