Here is an issue I have with Bitcoin...
I had a few clients ask me about Bitcoin lately. I explain to them what it is.
I talked about the extreme volatility that it has.
I talked about RISK tolerances with them...
All to have these particular people say, "Yah, yah...but I heard it's going to a Million $$ - don't you think we should add it to our portfolio?
The reason I talked about its volatility and the risks is because:
1) I legally had to,
2) It is my job as an adviser to educate my clients and give them every conceivable angle that I can see, good or bad.
3) But most importantly, in this instance, the clients were people that were extremely Risk averse.
This particular couple was really concerned when the market was going through a downturn in the past..
We often do "Risk tests" as Financial Adviser.. It is our job to judge, test, and record a clients amount of overall risk they are willing to take in the market.
This couple had scored a particular score that would indicate they are VERY risk averse and not willing to be in any investment that is very volatile.
All this to say... This is one example, of many, of what I have come across with BITCOIN recently.
I find that often it does not match with the people who want to buy it the most. That raises hairs on my neck.. and when that happens I have to separate my emotions from the facts.
I must follow logic and systems I have in place.
Do I have an issue with BITCOIN??
NO - I don't at all! If you believe in it and want to buy it, great... but please understand it is a high risk and very volatile. Some people have a very high level of tolerance for risk... and this might suit them better.
But unfortunately I am finding the ones that are most drawn to it, are the ones that want a quick solution out a bad place...
This is not meant to offend but to just say be smart about it. Do not invest in anything you don't understand and definitely do not invest in anything that goes directly against your risk tolerance.