Friday, October 27, 2017

WALL STREET JOURNAL WARNS: Don't Invest in Bitcoin

Here's the current headline in a special member-only section of the Wall Street Journal:
Should Individuals Invest in Bitcoin? In a Word, No.
Financial advisers say that despite the temptation, the market and regulatory risks are too great
The Journal article reported:
 “While the potential upside is alluring, the significant risk of loss is incompatible with prudent investing for long-term goals like college savings, buying a home or retirement,” says Julie Ford, founder of Ford Financial Solutions in New York.

Ms. Ford says she had a 45-year-old client recently come to her with a plan to liquidate a majority of her retirement savings and invest the proceeds, after taxes and penalties, in bitcoin.

Risking anything above a trivial amount in cryptocurrencies isn’t advisable, she says.
I am aware of one Silicon Valley techie who recently put all his savings, $990,000, into Bitcoin.

At this point, Bitcoin has to be considered part of the Federal Reserve money pump bubble. Once these techies lose their jobs in the next bust, they will never all be able to get out of Bitcoin at the same time.


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