February 28, 2014
Inevitably, at least once or twice per day over the past several months I found that the topic of Bitcoins has arisen in both discussions with clients as well everyday conversation. My replay has been quite simple - a borrowed phrase, one that I've come to know from George Conboy - Caveat Emptor , or simply, buyer beware. It appears that the topic of Bitcoins has manifested itself recently with the news that Mt. Gox, one of the largest Bitcoin exchanges online, has filed for Bankruptcy, marking a collapse of one of Bitcoin's largest marketplaces.
Before going further, if you're like me, up until not too long ago, and find yourself wondering, "what is Bitcoin?" you can find an easy-to-read, concise article here.
Back to the news of the day - that nearly $473 million in Bitcoins has been lost - whether it has vanished into the internet, the cloud, or someone else's hands - it matters not. The legal action will ramp up as (former) Bitcoin owners try to claim losses from Mt. Gox, but I'm not confident they'll be finding restitution anytime soon.
This is a classic case of an investment opportunity or strategy that seems like you can't miss, or lose, and often times, you don't miss or lose - until it's too late. Caveat Emptor, indeed.
Chuck Wade, Financial Advisor
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).