You’d have to be living in a cave on some uncharted isle to not have heard of Bitcoin. It’s perhaps the most well-known of all the cryptocurrencies.
“Cryptocurrency is a form of digital money that is designed to be secure and, in many cases, anonymous,” says Adam Bergman, CEO and Founder of IRA Financial in Miami Beach, Florida. “The first cryptocurrency was Bitcoin which was created in 2009 and is still the best known. There has been a proliferation of cryptocurrencies in the past decade and there are now more than 1,000 available. Bitcoin is a digital currency which relies on peer-to-peer software and cryptography.”
While names like Dogecoin, Algorand and Ethereum have been in the news lately, it remains the old standby — the OG of cryptocurrency — Bitcoin that has come to represent all others. But does its popularity have any oomph to it, or is it just another example of “tulip mania” or just another collectible fad. Or is it like something else?
“Bitcoin is like tulips in that there are times when the price of Bitcoin is driven by nothing more than unfettered greed and the naïve view that the price can only go higher,” says John Kauth, CEO of Intercontinental Wealth Advisors in San Antonio. “It is like baseball cards in that there is a finite number of bitcoins. It is like commodities and stocks in that it can be a legitimate asset class.”
Still, it’s somewhat easy to understand the fascination with…