Welcome to the world of cryptocurrency, where millions have been made and fortunes lost. Numerous cryptocurrencies are available, including Ethereum, Litecoin and Ripple, but the most well known is Bitcoin. You can’t touch a Bitcoin – it’s a virtual asset. Yet one Bitcoin, as at May 31, 2018, was worth $9,802. The current value is at cbix.ca.
The Bitcoin process
First, you open a digital wallet online where you hold cryptocurrencies, make transactions and view your balance. You purchase Bitcoins – or fractions of a Bitcoin – from an online cryptocurrency exchange or from one of over 450 Bitcoin ATMs across Canada. These purchases and all other Bitcoin transactions are recorded with other people’s transactions on a virtual block, like a page in a ledger. When the block is full, new transactions are recorded on the next block in the chain. Through blockchain technology, individual users can make secure, encrypted transactions without a central agency in control.
A speculative investment
You can make purchases and pay bills with Bitcoin, but the bigger story is its value as an investment. If you spent $10,000 to buy Bitcoins on January 1, 2017, those Bitcoins would’ve been worth about $160,000 by the end of the year. However, if you spent $10,000 to buy Bitcoins on January 1, 2018, they would’ve been worth about $5,000 three months later.
Cryptocurrency is an investment for speculators, not typically for investors saving for retirement. Those who invest in cryptocurrency may be wise to invest no more than they’re prepared to lose.
This material was prepared for and published on behalf of your financial advisor and is intended only for clients resident in the jurisdiction(s) where their representative is registered.
This material is provided solely for informational and educational purposes and is not to be construed as an offer or solicitation for the sale or purchase of any securities or as providing
individual investment, tax or legal advice. Consult your professional advisor(s) prior to acting on the basis of this material. Insurance products are available through advisors registered with
applicable insurance regulators. Individual equities are available only through representatives of Assante Capital Management Ltd. In considering any particular investment, please remember
that past performance is no guarantee of future performance. Although this material has been compiled from sources believed to be reliable, we cannot guarantee its accuracy or completeness.
All opinions expressed and data provided herein are subject to change without notice. Neither CI Assante Wealth Management or its dealer subsidiaries Assante Capital Management Ltd. and
Assante Financial Management Ltd., nor their affiliates or their respective officers, directors, employees or advisors are responsible in any way for any damages or losses of any kind whatsoever
in respect of the use of this material. CI Assante Wealth Management is a registered business name of Assante Wealth Management (Canada) Ltd. Assante Capital Management Ltd. is a member of
the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. Assante Financial Management Ltd. is a member of the Mutual Fund Dealers Association
of Canada and the MFDA Investor Protection Corporation (excluding Quebec). © 2022 CI Assante Wealth Management. All rights reserved.
