Bitcoin as an Alternative Investment

Dear Reader,

Up until recently, people regarded mainly hedge funds, private equity and real estate as alternative investments.

Since 2013 Bitcoin and slowly afterwards other cryptocurrencies entered the mainstream. Bitcoin and other cryptocurrencies are actually the single new investment asset class to be developed in decades. Bitcoin and other cryptocurrencies are alternative because they are new, unregulated and unstudied. The lack of regulation for Bitcoin and other cryptocurrencies fosters innovation in the asset class. Actually, the lack of regulation is the main reason why hedge funds and private equity funds owners are some of the richest people on the planet.

Regulation, in most cases, destroys investment. Banks, after nearly collapsing the global economy in 2008, are now heavily regulated and they are barely at their profit levels at 2008. The money is flowing now in private equity funds and hedge funds which do not benefit from an implicit government guarantee.

Bitcoin and other cryptocurrencies are now unregulated and that is one reason why they are flourishing. Bitcoin and other cryptocurrencies still offer opportunities to earn multiples on one's investment. There is always the risk that governments could outlaw Bitcoin and other cryptocurrencies. But governments, especially in relatively less democratic states, could also destroy companies, like the case of Ant Group in China clearly showed. And Microsoft's US antitrust problems threatened the viability of Microsoft at the time.

So, for now, Bitcoin and other cryptocurrencies offer good risk reward ratios. The Securities and Exchange Commission in the USA defines Bitcoin as a commodity. Yes, akin to oil and gold Bitcoin is volatile. But I think Bitcoin  and other cryptocurrencies are closer to stocks, since most cryptocurrencies depend on some company's project. Bitcoin and Etherum are a bit different since they serve mainly as a payments infrastructure.

All in all, Bitcoin and other cryptocurrency remain a revolutionary, quickly evolving asset class that holds the promise of any breakthrough technology - to change the world and simultaneously make many early adopters fabulously rich.

So far, I am optimistic.

Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is".

Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.

Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!

Respectfully yours,

Petar Posledovich