With the meteoric rise in the price of BTC over the past few months, most press coverage has generally attributed either the status of fad-driven bubble or anarchic revolution to the world’s favorite new currency. As such, it’s a pleasure to see Convergex Chief Market Strategist Nicholas Colas offer a balanced overview of Bitcoin.
“It could be a fascinating experiment in a brand new currency; one that knows no borders, knows no boundaries, and in many cases knows no rules,” Colas States, before noting that he discusses it with his clients as a “valuable part of a diversified portfolio.” This is a healthy view of Bitcoin – as a way to diversify away from the inflation and capital control risks posed by agenda-driven national currencies, while also recognizing the extreme volatility and hesitant uptake to date by the broader population.
Bloomberg’s reporter poses a question she “get’s a lot on Bitcoin” about the difference between Bitcoin and PayPal. We understand that Bitcoin is still a new concept – if you’re reading this and don’t yet understand the difference between a payment processor and a currency, we’d encourage you to check out TGB’s What is Bitcoin?
Credit to Nicholas Colas for elevating the conversation. Take a look: