Bitcoin Investing Services for Wealth Management

Cryptocurrency like Bitcoin is not an investment fad. Much like fiat, stocks, or any other financial mechanism, cryptocurrencies have very practical uses. When examined at a functional level, and on a global scale, digital assets and blockchain have numerous applications in commerce. A real-world example is the transfer of fiat - traditional currency - to a recipient in another country. Traditionally, there is a very long processing time and a significant fee for sending money through wire services, not to mention additional fees and volatility in currency conversion. With Bitcoin, value - money - can be transferred for very little, and within mere minutes (in some cases nearly instantly). This is just one of the many cases that make this new technology so exciting. Digital assets and DLT are innovative technologies beneficial to global commerce.

Everyone has read stories about fraud and scams in the world of cryptocurrency. While it happens, the same can be said for fraud in other assets, too — and at a larger scale. Data from the FTC shows that Americans had reported fraud losses of $5.8 billion, and $680 million in crypto fraud specifically. Meanwhile, Chainalysis reports that there was $15.8 trillion in cryptocurrency trading volume in 2021. So, while cryptocurrency fraud does happen, it is facetious to say it is the most common type of fraud or that crypto is mostly used for fraud when in fact that is quite untrue.

This also highlights the exact reason that RIAs should be involved in their clients purchase of digital assets - it adds an additional layer of security and validity to investing in Bitcoin. Having crypto investment services through a trusted RIA and working directly with our US-based cryptocurrency trading experts instills trust and confidence in clients that other exchanges cannot achieve.

The values in crypto governed by supply and demand are the same as with any other asset. If there is limited supply and there are many buyers, the price will increase. In contrast, if nobody wants it, the price will decrease. While some individuals may argue that cryptocurrencies like Bitcoin have no intrinsic value, they still have a market price.

Not buying it? Consider the following: Some argue that gold and silver, two popular commodity investments, also have no intrinsic value. After all, they generate no stream of revenue simply by owning them, it is only when they are sold that you get its market value. The same can be said for Bitcoin.

Meanwhile, many cryptocurrency advocates argue that crypto DOES have intrinsic value. New innovations in Ethereum, for instance, allow for special applications, smart contracts, payments, and more to be executed over the Ethereum network, thanks in part to the Ethereum that people own and stake in the network. This gives Ethereum new value by giving it abilities that simply cannot be accomplished through fiat currency.

Bitcoin has experienced multiple value crashes throughout its history. Likewise, the S&P 500, petroleum, gold, and real estate. Dramatic market declines are a normal part of investing. And while cryptocurrencies have dramatic volatility, they have, over time, performed much like more traditional assets and continued their growth. A common strategy used in crypto investing is utilizing dollar cost averaging, which helps reduce losses due to short-term volatility in the market, instead capitalizing on long-term growth, something that many long-time crypto investors believe the market is proving.

Additionally, many of the biggest “booms and busts” in cryptocurrency have been in smaller, lesser-known coins. CryptoFi On-Demand Trading is dedicated to providing the best services and currently only offers Bitcoin and Ethereum, the two most popular and highest market cap coins on the market.

This is answered with several current statistics:

• 94% of advisors have been asked by clients about cryptocurrencies.

• 145 million Americans own / have previously owned crypto (which is on par with the number who own stocks!)

• 53% bought crypto as an investment

• 52% would consider adding crypto to their retirement accounts

• 51% of Americans who DON’T own crypto want to buy it through their financial advisor

• 46.5 million Americans plan to buy crypto for the first time within the next year

The best time to invest is always some time prior to today. Think about real estate, tech stocks, and other popular investments. Investing is always forward looking.

Companies with enduring value and creative innovation tend to continue to grow in value. Cryptocurrency is doing the same today.

Numerous articles compare Bitcoin to gold. Gold is tangible. It’s a physical asset, can be touched, and carried in a pocket. Yet in and of itself - like Bitcoin - it still has no intrinsic value. Bitcoin, however, is a digital asset. It exists only in the computers that create it, all over the world. Unlike gold, cryptocurrencies - like Bitcoin - can be used for purchases and other means, transferring value in new and interesting ways. Many think that current cryptocurrency is serving as the foundation for a new system of monetary value.

Cryptocurrency regulation is in full swing both at the state and federal level in the United States. Cryptocurrencies and digital assets have moved well beyond the risk of being outlawed worldwide, with many countries adopting it to some degree. Governments are now moving toward ‘regulation’ - which is a good thing and provides a framework for broader corporate and financial institution adoption. In the US, Congress has proposed new laws to govern digital assets, the IRS requires transaction reporting, and the SEC requires crypto companies comply with AML KYC. New updates surrounding crypto regulation are bringing new clarity to the space in a somewhat positive direction, and by no means are signs pointing to crypto being “outlawed.”

We can compare Bitcoin to automotive manufacturers - especially EV manufacturers, or airlines or big pharma. All of these industries use a tremendous amount of energy. And just as there is a push to solve the energy consumption problem with cars, crypto mining will evolve. A good example are energy vampire devices - the devices in a house that are always on. It is estimated that these devices actually consume 20% of the total energy worldwide. Bitcoin accounts for less than ½ of 1%. Meanwhile, recent innovations in cryptocurrency like Ethereum’s “Merge” (check out our blog for more information!) are bringing crypto energy usage down to new lows, and innovations across the world are making crypto even more sustainable.