Why We Currently Don't Buy Bitcoin - Or Any Other Cryptocurrency

December 18, 2017

In our view, it is far too early to consider including cryptocurrencies or blockchain-driven enterprises in a strategic investment portfolio.

  • Cryptocurrencies are difficult to justify as an investment since they don’t satisfy the basic prerequisites of traditional investing.
  • While the fair value of traditional investments can typically be estimated based on forecasted earnings, forecasted income or assets, the fair value of cryptocurrencies is anyone’s guess since they neither generate earnings nor are backed by assets.
  • We believe the high-risk nature of the cryptocurrency market makes it an unsuitable investment choice when it comes to meeting important financial life goals, particularly for investors who cannot afford the high risk of permanently losing money.

Read the full commentary.