Richard Crenian Advises Against the Instability of Bitcoin Investment
Many Canadian investors have been looking towards Bitcoin as the cryptocurrency emerges as the latest investment trend. However, despite recent coverage, Bitcoin is still shown to be a less reliable and less profitable long term return investment than safer options like commercial property investment, advises Richard Crenian.
While there may be some big upside gains ahead, some experts fear it could turn into the biggest bubble human history has ever experienced. Bitcoin has seen sharp increases in the last year, but it has also seen double digit price drops as well.
Bitcoin prices are likely to drive up faster after recent surges in interest and media attention, and some predict that the cryptocurrency could hit $1M after starting the year at only ab out $1,000. However, because of numerous factors such as the lack of regulation and monopoly control, it is subject to extreme volatility and market manipulation.
These unstable fluctuations and unpredictable factors should have long-term Canadian investors concerned, notes Crenian, explaining that that although Bitcoin shows some possibility for short term gain, investors who are thinking about retirement, family wealth, and a legacy should be concerned about putting their money on this kind of instability.
Bitcoin Trends Worrying for Long-Term Investors
For those investing for the future, reliable income in retirement, and security for their nest egg, so they have assets that aren’t going to be evaporated right when they need it, commercial real estate still beat bitcoin hands down. Commercial property offers passive income, utilitiy and growth potential. It’s more trusted asset than virtual coins that were dreamed up yesterday. It is insulated from market manipulation by a few big asset holders, due to the many ways that investors can control and improve their asset performance and value.
It could become even more of a wild west landscape as thousands of promoters attempt to launch their own cryptocurrencies via ICOs (Initial Coin Offerings). Virtually anyone can launch their own digital currency today, and with more than 50 currencies being launched every month, it seems as though they are. Even among the biggest and best funded, it isn’t always the cake walk it is made out to be. Canadian messaging app Kik launched its own currency to raise money in September 2017. It brought in $100M. Just 3 months later the company’s market capitalization fell to almost half of that. There are talks of trying to find another blockchain platform, instead of the original Ethereum due to activity being dragged down by virtual kittens which have traded for as much as $1M.
Bitcoin may be exciting. You might even find you are better off taking any change you spend on the lottery or scratch offs and betting it on bitcoin. Though if investing for a comfortable retirement to cover travel or future medical bills or to pass on an inheritance, there is really no comparison when weighing the benefits of cryptocurrency against real estate. Especially commercial property. Slow and steady still wins the race.