Digital Assets: Bitcoin in Your Portfolio

Robert Swarthout joins Casey on today’s new episode to discuss cryptocurrency, digital assets, and block chain. Bitcoin is growing at a fast rate, but in the finance world it is still small. 46% of households recognize the term bitcoin and there are currently 13,285 crypto assets out there right now.

Listen on Apple Podcasts or watch on YouTube:

SUMMARY:

How does Cryptocurrency work?

Essentially, it’s a JPEG. Casey spoke about v-bucks inside a video game. You take the cash and use it only inside the game. Crypto is like v-bucks. A lot of people said that it would be the new gold, but cryptocurrency is very speculative and is only 5 years old. It does not have the history and stability that gold has.

Does Bitcoin follow the market?

Bitcoin tends to move with the market. If the market is at all time highs, bitcoin seems to be at all time highs. Since bitcoin is so young, it would be interesting to do some research on this.

The Risk with Cryptocurrency

You are taking a risk by owning cryptocurrency because it is unregulated. Most investors are emotional and make bad decisions. It is typical for individual investors to buy crypto at the top and sell at the bottom. If you’re going to do it, put a few thousand into the fund and then just walk away so that it can sit over time.

Not sure how to begin investing in Crypto?

At Wiser Wealth, we do not use crypto in our portfolios. This is because there is not a good vehicle for that right now. The market is waiting on a Bitcoin ETF or Mutual Fund – a basket would be preferable. Owning 1% of this in a portfolio would be best for now. Coinbase is currently the best way to purchase crypto as of today.

When will regulation come?

What are the tax implications? If you buy crypto and it goes down, on paper it’s a loss. It’s the same tax treatment as stock, but you can also do long-term gains on top of that. The hard part is that you have to monitor it yourself. Congress is starting to wake up and bring bitcoin attention to the SEC. Regulation is going to come eventually, but it will take time.

There is Opportunity

Just like buying any stock, there is opportunity. In this case, you need to have a plan that lays out when to purchase and when to back out. Some more practical uses of blockchain besides digital art are public voting, supply chain movement, initial litigation options and property deed management.

TIMESTAMPS:

4:24 How does Cryptocurrency work?

7:52 Does Bitcoin follow the market?

10:57 The Risk with Cryptocurrency

13:41 Not sure how to begin investing in Crypto?

20:17 When will regulation come?

25:35 There is Opportunity

LINKS:

Learn more about Casey Smith and connect with him on Twitter.

Learn more about Brad Lyons.

Learn more about Matthews Barnett.

CONNECT:

Twitter, Instagram, Facebook, LinkedIn, and YouTube.

Learn more about the Wiser Wealth Management Roundtable podcast and access previous episodes.

learn-more-2024-new

Recent posts

  • Why Business Owners Need an Exit Strategy

Share This Story, Choose Your Platform!

Wiser Wealth Management, Inc (“Wiser Wealth”) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). As a registered investment adviser, Wiser Wealth and its employees are subject to various rules, filings, and requirements. You can visit the SEC’s website here to obtain further information on our firm or investment adviser’s registration.

Wiser Wealth’s website provides general information regarding our business along with access to additional investment related information, various financial calculators, and external / third party links. Material presented on this website is believed to be from reliable sources and is meant for informational purposes only. Wiser Wealth does not endorse or accept responsibility for the content of any third-party website and is not affiliated with any third-party website or social media page. Wiser Wealth does not expressly or implicitly adopt or endorse any of the expressions, opinions or content posted by third party websites or on social media pages. While Wiser Wealth uses reasonable efforts to obtain information from sources it believes to be reliable, we make no representation that the information or opinions contained in our publications are accurate, reliable, or complete.

To the extent that you utilize any financial calculators or links in our website, you acknowledge and understand that the information provided to you should not be construed as personal investment advice from Wiser Wealth or any of its investment professionals. Advice provided by Wiser Wealth is given only within the context of our contractual agreement with the client. Wiser Wealth does not offer legal, accounting or tax advice. Consult your own attorney, accountant, and other professionals for these services.

Sign up for our newsletter!

Our latest blogs, podcasts, and educational videos delivered to your inbox weekly.