Written by Marc Wiese, MD of Warwick Wealth With Bitcoin trading at US$20, 000 at the time of writing, it is timely to consider whether crypto should form part of an investment portfolio. As with most investments, one needs to consider the risks, volatility and potential future returns of Bitcoin. The first main element to consider is risk. Bitcoin, like any other investment, has risks associated with its potential returns. Some of the main risks are as follows: Hacking your account – In most cases, an individual’s Bitcoin holdings will be placed with an exchange, this exchange is then tasked with the required trading and safe custody of your assets. As the Crypto Currency exchanges are a relatively new concept in terms of global financial institutions, there is an elevated risk of your assets being fraudulently stolen or account being hacked. As Bitcoin has been fuelled by promises of a “get rich quick scheme”, this too has fuelled fraudsters taking advantage of new opportunities to enrich themselves and hack individuals’ wallets. Failure of the Blockchain System – Most experts agree that the risk of the Blockchain system failing or being hacked is limited, as the Blockchain system has not been tried-and-tested over […]
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