Topic: [2015-04-10] WSJ: Should You Invest in Bitcoin? (Read 813 times)
To be honest I think bitcoin is actually going to be a great investment in the long run despite the poor performance recently. I'm not saying it's safe or 100% guaranteed but I'm taking my chances. You're not really just investing in the currency but the whole technology, and what it can achieve all around the world in various markets gives it massive potential in my opinion.
I like the frequency the WSJ covers bitcoin.
0.5%? Why not 1% or 2%? Most of the users of this forum have more.
I hope they are not one of those government hyped investment advisors who will tell you to put all your money in bonds because it's a sure gain.
Such people will never understand Bitcoin, but it's nice they at least consider it an option instead of completely ignoring like they did 2 years ago.
I hope they are not one of those government hyped investment advisors who will tell you to put all your money in bonds because it's a sure gain.
Such people will never understand Bitcoin, but it's nice they at least consider it an option instead of completely ignoring like they did 2 years ago.
Fundamentals of investment advise. Cover your ass.
Bonds with short duration pay out regularly and do not change much in value if interest rates change.
Suitable for pensioners, but younger people should take more risk.
0.5%? Why not 1% or 2%? Most of the users of this forum have more.
Of course we have more. Mr. Elbeck just doesn't want to get any complaints if Bitcoin doesn't increase in value.
The authority they cite is Matt Elbeck, who is a marketing professor in Dothan, Alabama.
http://business.troy.edu/Directory/melbeck
Woot! You couldn't make this stuff up.
http://business.troy.edu/Directory/melbeck
Woot! You couldn't make this stuff up.
His school sponsored several publications, but we cannot download any:
Publications
Selected publications by this faculty member in Sorrell College of Business-sponsored publications.
Adding Value to Online Business Course Content for Student Learning
We regret that this article is currently not available for download.
Aspects of Business School Multi-Campus Management - The Troy University Case
We regret that this article is currently not available for download.
Exploring the Effect of Learning Style on On-Line Group Learning
We regret that this article is currently not available for download.
How Students Learn: Improving Teaching Techniques for Foundation Business Discipline Courses
We regret that this article is currently not available for download.
Might be interesting to read his Bitcoin study.
The authority they cite is Matt Elbeck, who is a marketing professor in Dothan, Alabama.
http://business.troy.edu/Directory/melbeck
Woot! You couldn't make this stuff up.
http://business.troy.edu/Directory/melbeck
Woot! You couldn't make this stuff up.
You have to be a subscriber unless you're coming from a Google search.
Websites have weird ways.
You have to be a subscriber unless you're coming from a Google search. Here's a copy of the full article here:
Is your stomach strong enough to take a flier on bitcoin?
The value of the virtual currency can fluctuate wildly—even in a single day. From July 2010 to February 2014, its price was 26 times more volatile than the S&P 500, according to Matt Elbeck, a marketing professor at Troy University in Alabama, who co-wrote a recent study about bitcoin with a colleague, Chung Baek.
Related
On the Hunt for Higher Returns
In addition, nearly a half-billion dollars worth of bitcoin disappeared last year from Mt. Gox, once the dominant exchange for bitcoin trading. And regulators are paying increasing attention to digital currencies, adding another element of uncertainty.
For many investors, those kinds of risks are reason enough to stay far away.
Yet bitcoin could have some virtues for certain investors. “It doesn’t trade with stocks or bonds or gold or any other asset that typically appears in a mass-affluent portfolio,” says Nicholas Colas, chief market strategist at New York-based brokerage firm Convergex Group.
There also is growth potential, given that digital currencies are in their infancy. Investment firms show growing interest in the currency and in the technology behind it, which could point to more widespread use.
This year, the value of bitcoin has fallen about 23%, through Thursday, according to a CoinDesk index. Still, a single bitcoin is worth $243.26, up from less than $5 three years ago, according to the index.
Dedicating a small sliver of your portfolio to bitcoin may make sense for a younger, affluent investor who won’t get spooked by sharp swings in value.
Mr. Elbeck says such a stake should represent less than 0.5% of your investments.
And investors who will need to tap the money in the near term—or whose finances would be compromised if the investment became more or less worthless—should stay far away, says Mark La Spisa, president of Vermillion Financial Advisors in South Barrington, Ill.
“You want to try and be a day trader with this, go ahead and have fun, as long as it won’t have a negative impact on your retirement,” Mr. La Spisa says of bitcoin and other risky investments.
Investors can purchase bitcoin online through websites such as San Francisco-based Coinbase. The currency is stored in a digital “wallet,” which could be on your computer’s hard drive, online or in an offline “vault” operated by a storage firm.
Another option could be available soon. Bitcoin Investment Trust, the first publicly traded bitcoin fund, is expected to start trading in coming weeks, according to Michael Sonnenshein, a spokesman for fund sponsor Grayscale Investments, a subsidiary of New York-based Digital Currency Group. Each share of the fund will represent about one-tenth of a bitcoin, minus fees, he says.
Is your stomach strong enough to take a flier on bitcoin?
The value of the virtual currency can fluctuate wildly—even in a single day. From July 2010 to February 2014, its price was 26 times more volatile than the S&P 500, according to Matt Elbeck, a marketing professor at Troy University in Alabama, who co-wrote a recent study about bitcoin with a colleague, Chung Baek.
Related
On the Hunt for Higher Returns
In addition, nearly a half-billion dollars worth of bitcoin disappeared last year from Mt. Gox, once the dominant exchange for bitcoin trading. And regulators are paying increasing attention to digital currencies, adding another element of uncertainty.
For many investors, those kinds of risks are reason enough to stay far away.
Yet bitcoin could have some virtues for certain investors. “It doesn’t trade with stocks or bonds or gold or any other asset that typically appears in a mass-affluent portfolio,” says Nicholas Colas, chief market strategist at New York-based brokerage firm Convergex Group.
There also is growth potential, given that digital currencies are in their infancy. Investment firms show growing interest in the currency and in the technology behind it, which could point to more widespread use.
This year, the value of bitcoin has fallen about 23%, through Thursday, according to a CoinDesk index. Still, a single bitcoin is worth $243.26, up from less than $5 three years ago, according to the index.
Dedicating a small sliver of your portfolio to bitcoin may make sense for a younger, affluent investor who won’t get spooked by sharp swings in value.
Mr. Elbeck says such a stake should represent less than 0.5% of your investments.
And investors who will need to tap the money in the near term—or whose finances would be compromised if the investment became more or less worthless—should stay far away, says Mark La Spisa, president of Vermillion Financial Advisors in South Barrington, Ill.
“You want to try and be a day trader with this, go ahead and have fun, as long as it won’t have a negative impact on your retirement,” Mr. La Spisa says of bitcoin and other risky investments.
Investors can purchase bitcoin online through websites such as San Francisco-based Coinbase. The currency is stored in a digital “wallet,” which could be on your computer’s hard drive, online or in an offline “vault” operated by a storage firm.
Another option could be available soon. Bitcoin Investment Trust, the first publicly traded bitcoin fund, is expected to start trading in coming weeks, according to Michael Sonnenshein, a spokesman for fund sponsor Grayscale Investments, a subsidiary of New York-based Digital Currency Group. Each share of the fund will represent about one-tenth of a bitcoin, minus fees, he says.
Should You Invest in Bitcoin?
http://www.wsj.com/articles/should-you-invest-in-bitcoin-1428685864
Dedicating a small sliver of your portfolio to bitcoin may make sense for a younger, affluent investor who won’t get spooked by sharp swings in value.
Mr. Elbeck says such a stake should represent less than 0.5% of your investments.
http://www.wsj.com/articles/should-you-invest-in-bitcoin-1428685864
Dedicating a small sliver of your portfolio to bitcoin may make sense for a younger, affluent investor who won’t get spooked by sharp swings in value.
Mr. Elbeck says such a stake should represent less than 0.5% of your investments.
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