Everyone's favorite mainstream news outlet, CNN, is sticking its head out to ask the question of whether or not investors should have bitcoin in their portfolio. The article, written by Digital Correspondent Paul R. La Monica, brings up all the points you'd expect from a mainstream news website to make the case that bitcoin is much too risky of an investment.
First, it goes into recent quotes made by famous investors Warren Buffett and Charlie Munger who have slammed bitcoin, calling it a "delusion" and compared it to "turds."
This is a controversial question.
Bitcoin evangelists would argue that you should go all in on cryptocurrencies because the digital assets could be the future of money.
Fans of bitcoin also claim that the value of cryptocurrencies should be more stable because there is a finite supply of coins. Governments can always print more money.
But bitcoin skeptics, including investing legend Warren Buffett, think bitcoin is something to be avoided at all costs.
Buffett called it "rat poison squared" last year and said at the 2018 Berkshire Hathaway (BRKB) annual shareholder meeting that it and other cryptocurrencies "will come to bad endings."
Berkshire Hathaway Vice Chairman Charlie Munger went a step further, saying at last year's meeting that bitcoin is "just dementia."
"It's like somebody else is trading turds and you decide you can't be left out," Munger added.
It is understandable that anything a billionaire like Buffet says is newsworthy, but his ad hominem attack on worlds largest cryptocurrency lacks the substance needed to actually understand why he thinks the way he does.
The article then goes on to mention the 2017 bubble which saw the price of bitcoin spike to $20,000 before quoting the managing director of wealth and investments with Oakworth Capital Bank, John Norris.
Munger is correct to note that bitcoin was, for a time, a speculative mania.
But the bubble has burst for bitcoin and other cryptocurrencies like ethereum, litecoin and ripple/XRP during the past two years.
Bitcoin (XBT) enjoyed an epic rally from just under $1,000 at the start of 2017 to nearly $20,000 by the end of that year. It now trades around $3,800.
Needless to say, something that volatile is not for the faint of heart. And even after its dramatic drop, some financial advisers say people should be very careful with bitcoin.
"I don't see a compelling reason for someone to own bitcoin or other cryptocurrencies in their portfolio. It is highly speculative. There is so much risk," said John Norris, managing director of wealth and investments with Oakworth Capital Bank.
Norris would add that it would be a better bet to diversify into gold and Silver if you are looking to hedge against currency fluctuations.
The final point of the article is perhaps the most cliche argument being made against bitcoin. CNN's Paul R. La Monica would run the sub-headline, "Think blockchain instead of bitcoin."
Many companies, like software and services giant IBM (IBM), graphics chip maker Nvidia (NVDA) and payments company Square (SQ), have blockchain and other crypto-related businesses.
Even banking titan JPMorgan Chase (JPM) recently launched JPM Coin to help speed up some cross-border client transactions. Its coin comes despite the fact that CEO Jamie Dimon is a noted crypto critic who once said he'd fire people for trading bitcoin.
Norris conceded that a small wager on bitcoin could make sense. You just need to have realistic expectations. There's a greater chance that the investment won't pan out than there is of it making you rich.
"If you want to have a little fun, bitcoin is like betting on the ponies," he said. "It's a roll of the dice. You're taking a flier. You could win big. But you can lose your shirt on this."
CNN's lackluster Opinion On Bitcoin Misses The Mark
It is easier to call a new technology a "turd" than to explain what it is and why people think it is valuable.
If early bitcoin adopters listened to Buffet (who is almost 90 years old) words in 2010, they wouldn't be millionaires today.
CNN is correct in pointing out bitcoin's massive bubble in 2017, but it fails to mention that the currency started with a valuation of $0.00 at its genesis block. Considering this, bitcoin is still in a massive bull run.
There is no mention of bitcoin's incredibly secure network which is virtually impossible to disrupt nor is there any mention of the development of scaling solutions like the lightning network.
This is typical mainstream media half-wit that glosses over the incredible development that is happening in the cryptocurrency space and instead relies on recent price fluctuations and the opinion of investors who were born almost a century ago to share its opinion on the worlds most popular blockchain application.
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https://www.ghanawaves.com/should-investors-own-any-bitcoin-in-their-portfolio/
"everyone's favorite" lol
At least we know #Bitcoin is in most every waiting room, hotel lobby, happy hour bar, airports, bank lobbies and basically every institution; on repeat all day long.
CNN being bearish is a very bullish sign ;)
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