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George Atuan, CFA's avatar

You can quote a Bitcoin price all you want, but without dividends, coupons or predictable cash flows, you can’t truly value it, only price it. Real asset classes (stocks, bonds, real estate) generate cash you can discount.

Bitcoin?

It’s driven by hype, momentum and mood swings, just like collectibles or niche currencies.

So let’s stop pretending it fits alongside equities or bonds in a long-term portfolio. Treat Bitcoin as a high-beta trading play: buy if you expect a short-term pop, sell if you don’t. It’s a speculative side bet, not a foundational asset class.

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John Van Gundy's avatar

“PayPal and Coinbase, both of which hold large amounts of bitcoin, would fall into this carveout, since both companies have business that requires that holding.”

And how did Coinbase handle the North Korean hackers’ theft of millions of dollars worth of bitcoin from its clients’ wallets? It downplayed the amount stole, and it delayed accurate reporting of the thefts so as to prepare a defense against lawsuits.

Too many aspects of crypto currencies are false claims. Just three: 1) it’s not a currency, two cryptocurrencies are traceable, third blockchain is based on “trust” (see Coinbase above).

If any public company in which I’m invested states it plans to invest in Bitcoin or another cryptocurrency, I’ll sell my shares and run as fast as possible in the opposite direction.

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