The value of Bitcoin has gone up 150% this year.
A single Bitcoin is valued at more than $41,000 for the first time in over a year. At the beginning of 2023, it could be purchased for less than $17,000. However, experts say it can still be a risky bet. KNX News’ Charles Feldman spoke to Paul Nolte, a financial strategist, about this increase.
“When you're looking at cryptocurrency, it's really not an investment per se because it's a commodity,” Nolte said. “So it's really something that does not have intrinsic value, it's valued similar to gold. It's what somebody is willing to pay for that Bitcoin.”
Even with the recent gain in the value of Bitcoin, it still falls significantly short of its highs of 2021.. At one point, Bitcoin was selling at $70,000 before it crashed.
“We do not recommend our clients invest in cryptocurrency. I prefer to invest in something that has some revenue attached to it, some dividends or earnings, etc,” Nolte said. “But I think some of the attraction right now is built around the possibility that cryptocurrency might become an ETF and may have a more wide appeal.”
For example, you can buy stocks for companies on the S&P 500 as an exchange traded fund, or ETF. He explains that in the future, people may be able to buy Bitcoin in this same way. This just means cryptocurrency will go through a normal stock exchange, so it’ll have some legitimacy attached to it.
Nolte said he still won’t recommend cryptocurrency to his clients. He’d be more interested in companies that are attached to Bitcoin rather than the cryptocurrency itself.
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