OBSERVATIONS | HOW SHOULD WE THINK ABOUT CRYPTOCURRENCIES?

Cryptocurrencies are once again capturing investors’ attention. Bitcoin, the sector leader, is attracting significant institutional capital and increasingly being accepted as a method of payment by global consumer companies.
The opportunities for investors to research and read about the rise of cryptocurrencies seems almost endless and extends from trying to understand the nature of the potential investment through to ascertaining its ‘fair value’.
In this article we focus on some, though by no means all, of the key questions being asked. These include whether it is digital gold, a store of value, just a commodity, and if it can be a means of exchange. We also touch on the vibrant debate around Bitcoin and sustainability, as well as key observations on whether Bitcoin and other cryptocurrencies have a place in diversified portfolios.