April 3, 2021 | Investing
Today, we’re sitting down with LifeGuide Partner and Chief Investment Officer, Zak Lutz, to answer some of the most frequently asked questions we receive. This is the third part in our six-part Q&A series.
A: Bitcoin has been in the news sporadically for several years now. Whenever the price of Bitcoin jumps, it catches the headlines and captures people’s interest. Bitcoin, a cryptocurrency, is ultimately one of many different currencies throughout the world. And the value of currencies is always changing.
While it tends to carry some mystique, Bitcoin is essentially the same as any other currency in that it does not have intrinsic value. Bitcoin, like all currency, doesn’t actually produce anything—you can’t eat it, you can’t make something out of it, and it’s not productive like a company or real estate.
This, along with its relatively short track record, makes Bitcoin difficult to correctly value. Its value tends to be based mainly on fear or speculation.
Bottom line: Currently, from an investment perspective, we don’t give Bitcoin much merit. We are keeping our eye on it, though. (This is not to say that Bitcoin will go up or down in value—no one really knows.)