Digital Currency
Are you in the dark about Digital Currency? This article from the Wall Street Journal, Bitcoin and the Digital-Currency Revolution, will help explain how it works. But US News writes, “This digital currency may take daring investors on a wild ride...
"So is now a good time to buy bitcoins? Or is it ever a good time to invest in them? Financial experts from all corners of the traditional investment field answer with a resounding “no,” while digital entrepreneurs and their ilk say “yes,” often to the point of bullishness. Throughout 2014, the Securities and Exchange Commission kept a close watch on bitcoin activity. In May, it issued a warning that "the rise of bitcoin and other virtual and digital currencies creates new concerns for investors. A new product, technology, or innovation – such as bitcoin – has the potential to give rise both to frauds and high-risk investment opportunities.”
The article continues, "If they’re stolen via computer hack, good luck, says Kim Caughey Forrest, vice president and senior analyst of portfolio management at Fort Pitt Capital Group in Pittsburgh. “There are rules about what happens if someone breaks into the bank and steals and how the account owners are compensated. That is missing from the bitcoin world.”
"She also notes, “We would never tell a client to buy bitcoins as an investment. How can I ever tell if a bitcoin is over, under or fairly valued? I can’t. Neither can anyone else. This is what makes an investment. Otherwise, it’s a lottery ticket."
"That said, you may be able to buy lottery tickets with bitcoins in the future..."
http://www.prescottenews.com/index.php/business/item/26891-be-wary-of-the-next-big-thing-when-investing
Topic: [2016-01-23] Be Wary of 'The Next Big Thing' When Investing (Read 254 times)
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