Cryptocurrency is still a risky asset
I hold Bitcoin (along with other cryptocurrencies) and am certainly relieved to see prices recover. Even
so, price doesn't reflect value. It can be arbitrary and move based on speculation and market sentiment. To put it another way, the fact that Bitcoin just erased the losses of recent years doesn't automatically make it a safe investment.
If you're considering buying Bitcoin, think about the fundamentals. Some Bitcoin believers think that cryptocurrency
could become the digital currency of the internet. Others argue it is like digital gold, a store of value that cannot be controlled by
governments. Others think it could take a portion of the international remittance market, as it makes it easy for people to move money internationally.
Bitcoin's critics say it doesn't have any intrinsic value. Despite all the hype, people are not using it as a currency -- in part because of the huge price fluctuations. Some argue that Bitcoin is mostly used for illicit activities, such as money laundering and ransomware. Plus, Bitcoin mining consumes vast amounts of energy, with a carbon footprint the size of a small country.
