What is Cryptocurrency, and is it a Good Investment?


Why is there all of this talk about cryptocurrencies, and should we be listening? Bitcoin began 2017 worth $1,000 per coin, but closed the year at more than $19,000. Other so-called cryptocurrencies—digital currency that is sent and received electronically—are also soaring in value. There are over 1,000 cryptocurrencies in existence.

The perceived value of one cryptocurrency over another is based on the notion that the holder of the digital currency gains exclusive access to a given type of blockchain technology,” says Mark Williams (Questrom’93), a Questrom School of Business master lecturer in finance and executive-in-residence. Blockchain uses a volunteer computer network, controlled by no one, to record cyber-currency transactions that while public, link to just an electronic address. Enthusiasts foresee blockchain technology being applied to stocks, bonds, contracts, and other assets.

Some speculators view this as a lottery ticket, and if the market adopts your blockchain type, the payday will be astronomical. But this has also created an extreme asset bubble. Betting on a particular cryptocurrency is fraught with uncertainty and high risk.

My advice to those contemplating buying cryptocurrencies: do your homework first, understand your personal risk tolerance, and if interested, commit only an amount of money that you are willing to lose and that won’t impact you financially if it is a total bust. For risk-adverse investors, stick with traditional stock and bond investing, companies that have real assets, real boards, real management, real cash flow, and real regulation.

A mandatory condition for safe investments in the crypto-economy is a basic computer literacy. If you don’t know how computers work, then think twice before putting your wealth into cryptocurrencies.

Instead of actually buying cryptocurrencies, or coins, you can invest in the building blocks of the currencies, blockchain technology.  Blockchain technology powers Bitcoin and other cryptocurrencies, but there are many ways to invest in blockchain tech without pouring your money into these digital currencies. The first place to look into blockchain startups. The second option is crowdfunding platforms, as blockchain startups in their infancy will often look into crowdfunding to get off the ground.

So, what does the Oracle of Omaha (Warren Buffet) have to say about cryptocurrencies? “In terms of cryptocurrencies, generally, I can say almost with certainty that they will come to a bad ending,” Buffett recently said on CNBC, noting that he didn’t understand Bitcoin and other blockchain-based digital assets. It’s not the first time Buffett has dismissed cryptocurrencies. In 2014, the octogenarian investor dubbed Bitcoin a “mirage,” warning investors to “stay away from it.”

If you have questions, we can help. We offer a no-obligation first consultation. You can schedule your appointment today by calling us at 216.521.1711, emailing us at, or by clicking here.

Most Recent

5 Ways to Benefit from Rising Interest Rates

By Lineweaver Financial Group
August 09, 2018 Category: Bonds, Rising Interest Rates, Finance

After the most recent interest rate increase in June, the Federal Reserve has signaled that it is likely to continue raising interest rates this year, possibly even as often as once per quarter. In fact, fear that interest rates may rise faster than previously predicted has caused some volatility in the markets. Bond investors have been concerned about this for years, but this time it looks like its going to happen. Warren Buffet said, in his latest shareholder letter, that Often, high-grade bonds in an investment portfolio increase its risk. That can be true, but then, we dont all have Warren Buffets net worth to fall back on! That may have you wondering how can I take advantage of rising interest rates? And, generally speaking, bond yields go down as interest rates increase. But remember, while bonds may decline in value, their moves tend to be smaller compared to other securities. Many investors are flooding into U.S. Treasury bonds, making the so-called flight to quality, because

Q3 2018: Economic Commentary

By Lineweaver Financial Group
July 06, 2018 Category: Q3, 2018, Economic Commentary, Market Review

Global financial markets posted mixed results during the second quarter of 2018 as investors balanced strong earnings, an improving labor market and better economic growth here in the U.S. with political turmoil in Europe and deteriorating trade relations worldwide. We present a few highlights from the 2Q18 below: Despite heightened geopolitical rhetoric, the S P 500, the Dow Jones Industrial Average, and the technology-heavy Nasdaq Composite continued to trade near record highs amid positive economic data and strong corporate earnings. On the economic front, the Federal Reserve raised interest rates by 25 basis points in June to a range of 1.75% to 2%, and upgraded their assessment of U.S. economic growth. Consequently, the FOMC now anticipates raising interest rates four times in 2018. Developed international equity markets produced mixed results during the second quarter on political turmoil in Spain and Italy, and rising trade tensions with the U.S. Gains came out of Europe, while

HealthWatch: What Are Screens Doing to Our Eyes and Our Ability to See?

By Lineweaver Financial Group
July 06, 2018 Category: Healthwatch, Screens, Eye Strain, Newsletter

In todays society, if youre not sleeping, chances are youre looking at some type of screen. Whether its a computer monitor, a television, a handheld tablet, a GPS or our smartphones, we spend 10-14 hours a day staring at a screen. Many of us are familiar with the problems this can cause, such as headaches, dry eyes, eye muscle strain, and even blurred visionbut few of us know what can be done to correct it. The easiest thing to do would be to avoid screens as much as possible. However, for those of us who use our cellphones and computers every day for work, its impossible to avoid screen-time. So what are our options? One option is to adjust the brightness on your screen. Dr. Joshua Dunaief, a professor of ophthalmology at the University of Pennsylvanias Perelman School of Medicine also recommends shifting your screens color scheme away from blue and toward the yellow end of the spectrum. While some research has linked too much blue light exposure at night to insomnia, even daytime exposure

Newsletter (26)
Retirement Planning (14)
Financial Planning (11)
Retirement (10)
Tax (9)
Letter From The President (9)
Economic Commentary (8)
Lineweaver (8)
Market Commentary (8)
Healthwatch (6)
Education Programs (6)
General (6)
Tax Planning (4)
LFG (4)
Q3 (4)
Taxes (4)
Social Security (4)
2017 (3)
IRA (3)
Market Review (3)
Market (3)
Finance (3)
Bonds (3)
Tax Scams (2)
Financial Strategies (2)
High Income (2)
Client Spotlight (2)
Q2 Newsletter (2)
Tax Cuts And Jobs Act (2)
Brexit Update (2)
Social Security Benefits (2)
Interest Rates (2)
Diversification (2)
Estate Planning (2)
Tax Law (2)
Rising Interest Rates (2)
2016 (2)
Investing (2)
Jobs (1)
2017 Q4 (1)
RMD (1)
Reallocation (1)
Market Pullback (1)
Top Financial Strategies Of The Wealthy (1)
Fraud (1)
Defer Tax (1)
Transfer Real Estate (1)
Letter From The President New Years Resolutions (1)
Grand Kids (1)
Introducing (1)
Identity Theft (1)
Third Quarter (1)
Distribution (1)
Market Review 2017 (1)
Tax Cuts (1)
Kids (1)
Eat More (1)
Lose Weight (1)
Tax Cuts And Job Act (1)
Statements (1)
Tariffs (1)
Bitcoin (1)
Eye Strain (1)
Screens (1)
Vacation From Investments (1)
Marital Trust (1)
Bloodline Trust (1)
Trusts (1)
Inheritance (1)
In Laws (1)
Q3 Newsletter (1)
Summer (1)
Advice (1)
Investments (1)
Investment (1)
Cryptocurrency (1)
Market Volatility (1)
Drink Water (1)
Markets (1)
Travel (1)
Travel Tips (1)
Bruce Motko (1)
New Website (1)
Q2 (1)
Charitable Giving (1)
529 Plans (1)
New Tax Law (1)
Trading (1)
Mark Sipos (1)
Charitable Remainder Trust (1)
Equifax (1)
Financial Health (1)
Legacy (1)
Retire Early (1)
Retire (1)
Q1 2017 Newsletter (1)
Winter 2017 (1)
Market Update (1)
2016 Market (1)
1st Quarter (1)
Holiday Gifts (1)
Stockpile (1)
Holiday Planning (1)
Fall 2016 (1)
Self Employed (1)
Politics (1)
Candidates (1)
Election (1)
Gifting (1)
Harvest For Hunger (1)
Service Day (1)
Women And Money (1)
Charitable Contributions (1)
Social Security Planning (1)
Financial Advisor (1)
Financial Advice (1)
Retirement Tips (1)
Retiring (1)
Business Owners (1)
401(k) (1)
Real Estate (1)
Costs (1)
Expense (1)
Mutual Funds (1)
Lineweaver Wealth Advisors (1)
Conflict (1)
North Korea (1)
Coordination (1)
Financial (1)
Protection (1)
Risk Management (1)
Insurance (1)
REITs (1)
Growing Your Wealth (1)
Annuity (1)
Private Foundation Charitable Lead Trust (1)
Donor Advised Fund (1)
Charity (1)
Roth (1)
Policy (1)
Trump (1)
Bonds Ladder (1)
Stocks (1)
Dividend (1)
Life Insurance (1)
Annuity Alternatives (1)
Annuities (1)
2018 (1)
+ Show More

Terms and Conditions | Privacy Policy | Disclosures

Lineweaver Financial Group ©
Powered by Virteom