Is Bitcoin the new gold?

There is a way for retail investors to enter the market of cryptocurrencies. Extreme care should be taken, though.

By Peet Serfontein

most of us probably know somebody who has bought Bitcoin and burnt their fingers in the process. Just think of the local MTI scam that was recently crowned as the biggest crypto swindle in the world. Cryptocurrencies are digital or virtual currencies that are secured through cryptographics, which makes it almost impossible to counterfeit. These currencies are based on blockchain technology running on decentralised computer networks. Elon Musk’s Tesla recently announced that the company has invested $1.5bn in Bitcoin and that it would now accept the cryptocurrency as legal tender. Visa also recently indicated that cryptocurrencies would be playing a bigger role in its business dealings. Buying gold in times of uncertainty has always been the traditional way of hedging a portfolio. After all, it serves as protection against inflation. Bitcoin recently hit…

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Finweek - English (Digital) - 1 Issue, 3/4/2021

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