Our thoughts on Bitcoin are in line with the central bankers' comments below.
Federal Reserve Chair Janet Yellen called the digital currency bitcoin a “highly speculative asset” that “doesn’t constitute legal tender.”.
“Bitcoin at this time plays a very small role in the payment system,” Yellen said Wednesday during a press conference in Washington, appearing to downplay its ability to affect wider financial markets. She added that bitcoin is “not a stable store of value.” New York Fed President William Dudley said last month he would be “pretty sceptical” of bitcoin, adding that it is “not a stable store of value.” Reserve Bank of Australia Governor Philip Lowe said this month that the fascination with cryptocurrencies “feels more like speculative mania than it has to do with their use” as a form of payment.
We cannot deny its spectacular rise in value and have clients who have made substantial gains on the cryptocurrency.
If you are suffering from a bad case of FOMO and want to join the mania we suggest you
Consider the following:
Bitcoin may very well be the trade of the century, have we been here before with Tulips.....Hhhmm?
We believe it will crash at some point just don’t be the one holding the tulip bulb at that point.
We also believe it will eventually find its equilibrium and purpose as most things do. Where it goes in between ….well ….. who knows.