The future of bitcoin investment
Investors are getting ready to invest in Bitcoin and other cryptocurrencies.
The digital currency is on the verge of hitting a record high as of Wednesday, but the mainstream investment community is struggling to determine what to invest their money in.
“The bitcoin community has been very vocal about wanting to invest,” said Scott Stahl, CEO of digital currency exchange Gemini.
“We have seen an incredible amount of interest from investors who have been interested in cryptocurrencies, and have been excited about the potential.”
Investors want to be sure they can safely spend their money without worrying about security breaches or having to worry about hackers stealing their funds.
In addition to being more secure, investing in cryptocurrency is less risky because of the high volatility, said Scott Schoenfeld, CEO and cofounder of investment company Crypto Fund Advisors.
“When I first started working on this space a few years ago, we really wanted to be investing in something that was more stable and safe, but it was clear there was a need to do something about volatility,” said Schoenfield.
“With bitcoin, volatility is not the biggest issue, but people need to understand that this isn’t something they should be investing into.”
While the cryptocurrency market is growing at an astounding pace, investors have been getting frustrated by the lack of guidance about what they should invest in.
Crypto Fund Advisor, which provides a diversified portfolio of high-quality, diversified funds for small and mid-size investors, is one of the only institutions that focuses on investing in Bitcoin.
The firm’s strategy focuses on diversifying into high-growth, high-return products, which are backed by a mix of assets like stocks and bonds, said Schoehl.
It also offers proprietary funds that are targeted toward specific investors, like individuals who are willing to pay high fees.
“Bitcoin is a very young and emerging cryptocurrency, and the market is still in its infancy,” said Schwab Co-Founder and CEO Brian Gardner.
“It is a great time to invest, and we believe there are a lot of opportunities out there for those looking to diversify.”
For instance, Schwab’s Crypto Fund has an asset allocation that includes a combination of Bitcoin, a digital currency that was created in 2009, and other digital assets.
In addition to investing in digital assets, Schwabs Crypto Fund invests in high-risk, high pay stocks and has no debt, according to its website.
Cryptocurrencies aren’t the only cryptocurrency to have received high interest from institutional investors, said Chris Schubert, founder of digital asset trading platform Cryptostock.
Cryptostocks clients include the investment arm of Goldman Sachs Group Inc. and the U.S. Securities and Exchange Commission.
Schubert said there are now a number of crypto-related companies that have attracted institutional investment.
These include Ripple Labs, which has raised $1 billion in a Series B round; Coinbase, which is one among several digital wallet providers, and Coinfloor, which recently raised $4.4 million.
“It’s becoming more and more common that people are beginning to look at cryptocurrencies and other virtual currencies as a potential way to invest without the need to rely on a traditional bank or investment vehicle,” Schuert said.
“Cryptocurrency can be a very attractive alternative to traditional banking, but if you’re willing to spend a lot, there are some really attractive returns out there.”
Bitcoin and other crypto-currency investments have gained traction since the launch of the U., a virtual currency launched by the bitcoin network that offers instant payments, instant access to digital assets and instant global transfers.
The U. S. Treasury Department has warned that a surge in virtual currencies could be a danger for U. States taxpayers.
Some experts, however, believe there’s nothing stopping governments from regulating these virtual currencies.
Cryptos are often used as a medium of exchange for virtual goods or services, and bitcoin’s value soared after the U, which was launched in 2011, was announced.
“I think the U is the first digital currency to have gotten a lot more mainstream adoption,” said Jason Klamar, an associate professor of finance at the University of San Diego.
“I think there’s a lot going on right now that’s bringing bitcoin to the mainstream.”
Bitcoin is not a regulated currency, but Klamor thinks that the U could be the first to allow virtual currencies to be traded on an exchange.
“We’re very optimistic about the future of Bitcoin and digital currencies, but there are going to be a number that don’t get mainstream adoption right away,” he said.
In the past, bitcoin and other online currencies have struggled to gain traction, but that may be changing.
“At the end of the day, it’s the ability to trade the currency in real life, which we’ve seen in the past.
The biggest problem for bitcoin is it’s a new thing, it hasn’t had a lot in the way of mainstream adoption yet,” said Klamer.”
But as the technology continues to evolve, we may see Bitcoin