It’s been a dismal year for the economy. But one bright spot amidst the recession has been the explosion in the value of Bitcoin and other cryptocurrencies.
Bitcoin was initially conceived to take power away from banks and governments to artificially increase or decrease the supply of money and remove the need for a bank to be involved in transactions between individuals.
Those who champion Bitcoin (the Bitcoin Bulls) see it as the equivalent of gold for the modern world. While gold itself doesn’t have any inherent value, other than for some industrial uses, there is a limited supply.
There is certainly the risk that it could be regulated out of existence or at least modified such that it bears no resemblance to the Bitcoin of today.
If you’re interested in cryptocurrencies and investing in a Bitcoin ETF, make sure you understand both the benefits and the risks of this new digital asset class.