Home Business Financial advisers remain wary of cryptocurrency
But a cryptocurrency is just that: a currency, a medium of exchange. Buying bitcoin (for example) is a bet on price movement; it’s not an investment like buying a bond, real estate or shares of a company, Dent says.
However, he believes the blockchain–the distributed ledger technology upon which the currencies are built–will be revolutionary. Publicly traded companies that serve the industry might be worth considering, he says.
Cryptocurrencies are not highly regulated, which adds to the volatility, says Chad Olivier, a certified financial planner in Baton Rouge. President Joe Biden has asked federal agencies to study the impact of crypto on financial stability and national security, and Federal Reserve Board Chair Jerome Powell has discussed the need for regulation, Olivier adds.
“There are exchange traded funds that track certain cryptocurrencies, which could be an alternative for many investors,” Olivier says by email. “Any way you slice it, this is a technology that is rearing its head now, but who the winners might be is the tricky part of it.”
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Source: https://www.businessreport.com/business/financial-advisers-remain-wary-of-cryptocurrency