What is Bitcoin?
Hello Everyone - Someone once said “may you live in interesting times”. My goodness. That is an understatement right now.
Colleen and I recently returned from San Diego. We met with friends there and it was an amazing trip. Everything from Mission Beach, touring the Midway, Little Italy, and the Vineyards in Temecula were all terrific, and the people were amazing too. I would go back in a second.
In San Diego, electric and hybrid vehicles, buses and bikes seem to be everywhere there, and the discussion of AI in various articles and the world around us are never ending. Of course electric vehicles and AI are joined at the hip, and that’s a single application. Robots that can stand, walk, run, dance, smile, listen and do work are not far behind. Digitalization seems to be happening quickly, and this brings me to the digitalization of money. Another word for that is Bitcoin!
I’m not pushing anything here. I’m simply informing you that these things are happening, and Bitcoin is not the least of them. A digital world needs digital money right? So what is Bitcoin? Bitcoin is best explained as an asset……a digital asset, and it’s unlike anything else we have ever seen before. Think of it as a store of value in digital form. You may ask “why does it have value?”. Great question. It has value because it is recognized as money and it has a limited supply. According to the Bitcoin code, there is only so much Bitcoin that will ever be available.
The government can produce and borrow money at will, and the more dollars that are out there the less those dollars can buy. That’s inflation, and from what I can tell there is no end to it. That’s why growing our wealth is so important. It’s because we are all just trying to keep up. Add taxes to that and it becomes nearly impossible for many.
Stocks and real estate are some traditional ways to keep up. Now enter Bitcoin as another possible way. In January the SEC approved new bitcoin investments called exchange traded funds (ETFs). They trade on the New York Stock Exchange. Essentially Bitcoin went public, and now any and all investors can easily invest in bitcoin using these new ETFs. Oh, and guess what……the money is rolling in. In just two months time, the Bitcoin ETFS are nearing the amount in Gold ETFs.
Be advised that Bitcoin is new, Bitcoin is volatile, and much more education is needed. We are doing our homework, and we believe Bitcoin ETFs may be a smart way to diversify our portfolios….even if just a little bit. Fidelity seems to think so as they have already moved in that direction. We are doing everything we can here to keep you current. If you would like to learn more about Bitcoin and how to invest, please drop me a note back.
We are taking new clients at this time!
Mike
