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 the representative named herein 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, financial planning, 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. (“ACM”). Representatives of Assante Financial Management Ltd. (“AFM”) may offer non-securities-related financial planning through an outside business activity. Investment recommendations must be provided by representatives of ACM or AFM. 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 ACM or AFM 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. Certain names, logos or graphics herein may constitute trade names, trademarks or service marks (“Trademarks”) of CI Investments Inc. and/or its affiliates or of third parties. The display of Trademarks herein does not imply any license has been granted to any third party. ACM is a Member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. Copyright © 2020 Assante Wealth Management (Canada) Ltd. All rights reserved.