IRA Financial’s Adam Bergman Esq. discusses some Bitcoin news – why it has been the best asset class in the last year and explains why it’s not too late to get in the game.
In Bitcoin news, it recently reached a record high price of around $42,000. It has since backed down a bit to just under $35,000 as of this writing. Even still, that’s up about 600% from it’s 2020 low at the start of the COVID-19 pandemic. NO asset class has seen near those returns in that time frame. Is it too late to jump on the Bitcoin bandwagon? More importantly, is it for real? In this podcast, Mr. Bergman will share his insights and all the Bitcoin news of the day.
Hard to Understand
A lot of people have been skeptical about Bitcoin and other cryptos because they don’t understand it. And in all honesty, we totally get that! If you asked someone twenty or thirty years ago about the internet, artificial intelligence and even cell phones, he or she would wonder what you were talking about. Most people don’t know how the internet works, but they do know how to get online. Just because you do not understand something, doesn’t mean you can’t invest in it.
It’s all about investing in the future. Cryptocurrency is a new and emerging asset class. Basically, Bitcoin is a digital currency that has been invented without a central bank. Whereas the Federal Reserve is responsible for America’s monetary system, Bitcoin doesn’t have a single person or organization in charge. Cryptocurrency is an exchange of digital information that allows you to buy or sell goods and services. The transaction gains its security and trust by running on a peer-to-peer computer network that is similar to Skype.
This podcast will not get into the technical aspects of Bitcoin (that will come in a future episode), however, as we said, you don’t need to know exactly how it works. Just look at the numbers over the last few years. It’s been a roller coaster ride, however, Bitcoin and other cryptos, like Etherium, are through the roof. More so, they are here to stay.
Is it Too Late to Invest?
As they say, it’s never too late. Of course, if we were all smart, we would’ve invested in Bitcoin five years ago; even one year ago. That’s not to say that you can’t invest now. It’s just like any public company that you can buy stock in. Just because Amazon or Tesla stock is not cheap, doesn’t make it a bad investment. Now, Bitcoin news will show that it’s not a guarantee. Back in 2018, it went up to near $20,000 but fell hard. Just like any investment, there is risk. Obviously, the reward for those who have held their Bitcoin has been huge.
What else are you investing in right now? Stocks are overexposed by most retirement accounts. Fixed income is dead because of near zero interest rates. Real estate is still king among alternative investments, however, not everyone can afford to purchase a piece of property with retirement funds. Mr. Bergman, along with everyone at IRA Financial, is not a financial advisor. It’s important to keep that in mind as he discusses different investment options. However, in our opinion, everyone should have some exposure to cryptos. Diversifying must be a part of everyone’s strategy. Why not add diversity by investing in something new and exciting?
IRA holders are generally long-term investors – that is why investing in cryptos, which will make up the future of financial transactions and our global economy in the future, makes so much sense.
Advantages of Investing in Bitcoin
Irreversible: After confirmation, a transaction can‘t be reversed. By nobody. And nobody means nobody. Not you, not your banks!
Privacy: Neither transactions or accounts are connected to real-world identities. You receive Bitcoin on so-called addresses, which are random chains of around 30 characters. While it is usually possible to analyze the transaction flow, it is not necessarily possible to connect the real-world identity of users with those addresses.
Secure: Bitcoin funds are locked in a public key cryptography system. Only the owner of the private key can send cryptocurrency. Strong cryptographic technology and the magic of big numbers make it impossible to break this scheme. A Bitcoin address is more secure than Fort Knox.
Fast and No Borders: Transaction is propagated nearly instantly on the network and are confirmed in a couple of minutes. Since they happen on a global network of computers, they are completely indifferent to your physical location. It doesn’t matter if I send Bitcoin to my neighbor or to someone else on the other side of the world.
Bitcoin is not for everyone, but you are doing yourself a disservice if you don’t at least look into it. Speak with your financial advisor and see if it’s the right fit for you. It may be too much of a risk for you at this time. On the other hand, maybe you can afford to put a couple thousand dollars into Bitcoin or other, less expensive, cryptocurrencies.
We hope you enjoyed this episode. It’s a topic Mr. Bergman is passionate about. Exciting new assets are always something to consider. Thanks for watching and be sure to check out SoundCloud for all episodes of Adam Talks.