Coinbase, Coinbase Bitcoin [CBBTCUSD], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred. stlouisfed.org/series/CBBTCUSD , November 13, 2024. On the flip side, rewards reaped from investing in cryptocurrencies include high potential for profit, portfolio diversification, and protection against inflation, to name a few. Importantly, buy-in from financial institutions including banks and pension funds has legitimized the value of investing in crypto. Wisconsin’s pension fund, for instance, purchased nearly $164 million worth of shares in bitcoin ETFs this year after they were approved by the SEC in January. In summary, cryptocurrency serves as a disruptor but also as an innovator in financial markets.
If interested, retail (individual) investors can invest in cryptocurrencies and related financial products in a variety of ways. For more information on this topic, Forbes Advisor offers a helpful article targeted at informing those who want to incorporate crypto into their investment portfolios: Start Investing in Cryptocurrency: A Guide for Newcomers & Beginners. Financial gains can be great, but so can the losses. As with any investment, conduct thorough research before jumping on the crypto bandwagon. In other words, proceed with caution! The world of crypto is a complex one, indeed; its future remains to be seen.
References • Barnes, Trent. Crypto ICOs: A Brief History . July 29, 2020. https://zerocap.com/insights/articles/icos-a-brief- history/ • Dore, Kate. What to know before buying the first bitcoin ETFs. FOMO ‘is a poor investment strategy,’ expert says . Jan 11, 2024. https://www.cnbc.com/2024/01/11/heres-what-to-know-about-the-first-bitcoin-exchange-traded- funds.html • Dore, Kate. What the first bitcoin futures exchange-traded fund means for the cryptocurrency industry . Oct 24, 2021. https://www.cnbc.com/2021/10/24/what-first-bitcoin-futures-etf-means-for-cryptocurrency-industry.html • Grantham-Philips, Wyatte. Bitcoin briefly hits an all-time high, less than two years after FTX scandal clobbered crypto . Mar 5, 2024. https://apnews.com/article/bitcoin-record-cryptocurrency-c5d6d4b09e93bbc22222fab3 231bdf59 • Jayasuriya, Dulani. Cryptocurrencies use massive amounts of power – but eco-friendly alternatives come with their own risks . June 6, 2024. https://theconversation.com/cryptocurrencies-use-massive-amounts-of-power- but-eco-friendly-alternatives-come-with-their-own-risks-229607 • Kilroy, Ashley. Start Investing In Cryptocurrency: A Guide for Newcomers & Beginners . Jul 29, 2024. https:// www.forbes.com/advisor/investing/cryptocurrency/cryptocurrency-for-newcomers-beginners-guide/ • Kremer, Rich. Wisconsin pension fund now includes bitcoin . May 16, 2024. https://www.wpr.org/news/ wisconsin-pension-fund-bitcoin • Tambe, Nikita. Advantages and Disadvantages of Cryptocurrency in 2024 . Oct 29, 2024. https://www.forbes. com/advisor/in/investing/cryptocurrency/advantages-of-cryptocurrency/ • FBI Releases 2023 Cryptocurrency Fraud Report . Sep 9, 2024. https://www.fbi.gov/contact-us/field-offices/ philadelphia/news/fbi-releases-2023-cryptocurrency-fraud-report • The History of Cryptocurrencies . https://trendspider.com/learning-center/the-history-of-cryptocurrencies/
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Center for Business and Economic Insight
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