![]() Though in some periods commodities have outperformed many investment types (including stocks), it is confusing to hear their long-term investment case. As an investment class, the annual long-term return on commodities has been less than inflation, essentially making NO money. ![]() Commodities such as gold and oil have gained special attention due to their recent dramatic volatility in prices, but commodities cover a wide array of items like wheat, cattle/pig meat, metals like iron and copper, and more. Just a fancy word for “goods” – this asset class has recently gained favor as an investment usually with the intent to benefit investors in the case of inflation (the general rise in prices). Overall, we think the lack of income, potential for total loss, and high correlation with equities makes it unappealing from an investment standpoint. Recently, correlation between Bitcoin and Equities has been high, making it unattractive for diversification purposes.It is unclear which (if any) cryptocurrency will gain mass adoption.Bitcoin processing time is too slow for most everyday retail transactions (timing for 1 Block confirmation is currently ~10 minutes).Access key could be stolen or lost, resulting in a 100% value loss.High price volatility Bitcoin has had 3 drawdowns of at least 80% since its inception.Some of the draw to Bitcoin is due to its scarcity, lack of regulation and high security.īut, there are several disadvantages to Bitcoin and other cryptocurrencies: Bitcoin is a digital currency that is decentralized, meaning it is not issued or backed by any central banking authority.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |