Bitcoins have caught the eyes of many people, including investors and speculators. Are they a safe or even worthy investment? Before we delve into the feasibility of investing in bitcoins, lets get you up to speed on what they are.
Bitcoins are a digital currency. They are not printed by a government bank in a country. Nobody controls how much bitcoins are printed and what they are worth. Bitcoins are created through a process called digital mining. A person offers computing power used to power the public ledger or accounting system of the Bitcoin transaction system. In return for offering computing power to operate Bitcoin exchanges and records, a person receives a portion of the processing fees and newly created bitcoins.
This may sound good so far, but there are some downsides to bitcoins as wealth manager Brad Reifler explains. Bitcoin has developed a reputation among law enforcement as being the leading currency of choice for drug traffickers and money launderers. Many merchants also do not accept Bitcoins and it can be a problem to exchange them for other currencies.
The values of Bitcoins is also inflated by many speculators hoping to profit of an increase in the future value of Bitcoins. Bitcoin value is also very volatile. Another concern of Bitcoins is that they can be easily stolen through hacking and fraud and that there are no chargebacks with bitcoins. All of these parameters lead to Brad Reifler saying that Bitcoins are a very risky and bad investment because they are primarily fueled by hype and speculation.
As a wealth manager and investor for over thirty years Brad Reifler cannot stress the importance of avoiding investments that are over-hyped and fueled by speculators. They are literally a disaster waiting to happen. Mr. Reifler offers the following five tips for investors who want sound financial returns.
The first tip is to pay close attention to how you invest your money. Take a look at risks, the projected time you will make a return and create goals for yourself. The second tip is to make sure your money is secure and the third tip from Reifler is not to put all your investment into the stock market which can be highly volatile. The fourth tip is to develop a strong and trusting relationship with the manager of your funds. Lastly, says Brad is to always keep your objective in mind, learn from mistakes and build upon success.
Brad Reifler’s latest investment venture is Forefront Capital. As the CEO and founder of Forefront, Reifler’s goal is to give the 99% of investors who are not accredited the chance to invest in high yield and high risk investments that are only available to accredited investors and institutions. Forefront Capital is one way that Brad Riefler is fighting on the behalf of the 99% and diminishing wealth inequality. Talk to Brad on Twitter, where he’s a very vocal voice in the financial community.