May 2021 Newsletter
Recently there was a very large pullback in the cryptocurrencies which made the timing of this newsletter pretty interesting. This large pullback is from China’s announcement that they have no intention of allowing crypto…they are a centralized government and cryptocurrencies bypass all of that…now to the newsletter.
It’s the middle of May, flowers are in bloom and the cryptocurrency craze is on every investor’s mind. According to Yahoofinance.com, there are currently 373 recognized cryptocurrencies. This proves a few things: 1) cryptocurrencies are increasing in number daily, and 2) the investing world is interested.
As financial advisors, we strive to stay informed on the newest and latest investing trends. We want to understand the various ways we can support clients and their financial goals, both short and long-term. It is for this reason that we want to discuss the topic of cryptocurrency, mainly Bitcoin.
Cryptocurrencies function similarly to digital banking except without a need to go through a third party like the bank. It is based on peer-to-peer transactions and can make transferring money easy. Yet, it is also unregulated and unforgiving. You make a transfer mistake in Bitcoin and that money is gone.
As financial trends come and go, our role is to remain objective, unbiased, and remove emotion from the investing process. For those interested in understanding the hype behind the craze, attached is a white paper you may want to read. If you are interested in pursuing this type of investment, please reach out and book an appointment to meet with a team member through our website.