Have you heard of digital gold? What is it? How does it work? What should you consider when investing in bitcoin and other cryptocurrencies? Proceed with caution because the excitement over it can be potentially dangerous.
In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks to Chase Branham from Kraken, a big player in the bitcoin industry that buys, sells, and trades cryptocurrencies.
- Cryptocurrency Timeline: How, when, what, and why Chase got hooked
- Basics of Bitcoin: Created in 2008 via anonymous white paper about Blockchain
- Blockchain: Computer network transfers money without a central authority
- Supply and Demand: Bitcoin is limited in supply but high in demand – like gold
- Price Swings: Value and use drives volatility and speculation of peaks, crashes
- Comparison Mistake: Bitcoin is a form of currency, not an investment (stocks)
- Profit and Pain: Bitcoin price drops are to be expected and without precedent
- Future of Cryptocurrency: Expected to become preservation of purchasing power