Reading Time: 10 Min
A former institutional investor breaks down what cryptocurrencies are and how to frame the pros and cons of an investment in various cryptocurrencies, all in under 10 minutes.
The attention cryptocurrencies are getting in the media – especially Bitcoin – is astronomical. It’s not hard to understand why. The price of a Bitcoin was $300 at the beginning of 2015. The price of a Bitcoin today is close to $14,500. Wouldn’t it have been great to have bought a couple hundred of these puppies two years ago and sail away to a life of largesse on your private island just two years later? There’s even a story that went viral of one of the first Bitcoin transactions seven years ago, when a gentleman paid 10,000 Bitcoins for two Papa John’s pizzas, a sum that would now be worth $145 million (the articles you’ll see show a smaller figure because Bitcoin’s price has jumped significantly in the last few months).
Because of this, I’ve received many emails from readers asking for more information on investing in cryptocurrencies. I’ve honestly dragged my feet about this because I have had the cryptocurrency discussion over a dozen times both back when I was investor evaluating investments in blockchain technology/cryptocurrency and with friends in real life. After getting half a dozen emails about Bitcoin in the same week, though, it’s clear there’s a real interest in exploring the subject, and perhaps the research I’ve done on the topic would be helpful to publish so that others can come to their own decision.
So here we go. Here’s everything you need to know