Now ain’t that a ‘Bitchcoin’

By Elliot Bullman

Do you know the true risk of cryptocurrencies?

For months I have had clients asking me cryptocurrency. Shall I buy Bitcoin, shall I buy Ethereum, how does it work etc.?

Now ain’t that a ‘Bitchcoin’ 2

The news concerning a third of Bitcoin’s value getting wiped out this week comes as no surprise. From a humanistic rather than financial point of view, that means a lot of people just lost a lot of money! A lot of ordinary folks bet on red and it came up black, trying to transform their ordinary lives with a lotto investment mentality.

I am in the financial business. I am in the media business. Either way, I am not conflicted by either to be honest. You see, basic investment principles always have to applied. What is my risk tolerance, what is my financial capacity and most importantly, past performance is no guarantee of future performance.

I lived through the giddying mid 90s publicising the pants off dotcoms and watched the financial meltdown of that industry. Out of the wreckage and ashes of billions of VC money that went up in smoke, the internet rebooted itself and a more accountable internet business model was born.

More recently came the mortgage securities bubble and the subsequent crash of 2008/9. Once bitten, twice shy you’d think? .

Seemingly not.

Now ain’t that a ‘Bitchcoin’ 1

Once again, like lemmings falling off a cliff… well we all know how that story ended.

So like I said, today feels like the start of that cycle all over again. Nobody, least of all me wants to see innocent lambs being silenced, but this has been my prevailing thought since the hype started on Bitcoin.

What advice do I give to my clients? It is simple. If it’s money you can afford to lose, then go ahead, buy kryptonite as I like to call it nowadays. Maybe you will get rich, maybe you won’t.

Governments, central banks and financial institutions have weighed in to exercising the watchword “caution”, filling may be hot.

Now ain’t that a ‘Bitchcoin’ 3

On the other hand, the futures exchanges, the Bitcoin paparazzi and financial advisory industry are foaming at the mouth to get you to invest. But believe me, talking to these guys, there is trepidation.

I just watched Jared Vennett's pitch to Front Point Partners (the Jenga Blocks scene from the 2015 movie, The Big Short) Watch it before you invest a penny in crypto. Then see if you still want to buy in.

Make an informed choice. As an investor you always deserve to know the facts.

My final advice is this. If it doesn’t smell like turkey, it ain’t Christmas. And Christmas did not come early for many Bitcoin investors this week.

Elliot Bullman is a Financial Advisor with KNG International Advisors. Email e.bullman@kngadvisors.co.uk

RELATED NEWS

  • Trump backs down and signs executive order to Trump backs down and signs executive order to 'keep families together'
  • Despite uncertainty about the election, Mexico continues to attract investmentsDespite uncertainty about the election, Mexico continues to attract investments
  • On Saturday, repaving works start in Cancun’s hotel zoneOn Saturday, repaving works start in Cancun’s hotel zone
  • Mexican entrepreneurship project receives award in FranceMexican entrepreneurship project receives award in France
  • MexicoMexico's foreign minister and business leaders express outrage over ‘inhumane’ US immigration policy
  • The Dow Jones industrial average turned negative as global trade war fears mountThe Dow Jones industrial average turned negative as global trade war fears mount
  • Canada legalizes recreational cannabis useCanada legalizes recreational cannabis use
  • EU to retaliate against US with counter-tariffs on FridayEU to retaliate against US with counter-tariffs on Friday
  • Mexican national team football shirt is best  seller in the United StatesMexican national team football shirt is best seller in the United States
  • Scorpion catching is a dangerous trade that allows Durango’s locals to survive.Scorpion catching is a dangerous trade that allows Durango’s locals to survive.
  • Rafael Márquez , is only the third player in history to achieve the feat of playing in 5 world cupsRafael Márquez , is only the third player in history to achieve the feat of playing in 5 world cups
  • It’s not just in football that Mexico is superior to GermanyIt’s not just in football that Mexico is superior to Germany
WATCH LIVE TV



Most Read Articles
Most Watched Videos
  • Generations Riviera Maya
  • Mayair

Language

Mexico News Network
All rights Reserved 2018