Blockchain technology, the basis for the digital currency Bitcoin, isn’t well understood. Yet, even beyond Bitcoin, it could impact our world in profound ways.
“I definitely recommend that everyone who is an investor, technologist or business person spend some time getting up to speed with this,” said Bruce Fenton, executive director for the Bitcoin Foundation, chief investment officer for Atlantic Financials as well as managing director for Boston Gulf Advisors Group.
Fenton has extensive experience as a global advisor with a strong interest for emerging markets and new technologies such as Bitcoin. We sat down with him to discuss the new technology and how it might impact your world.
XBT Provider continuously interviews reputable individuals in both finance and the bitcoin industry to try to give an unbiased view on what this new technology might mean for investors.
Why are you interested in bitcoin and blockchain technology?
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The blockchain is basically the world’s greatest ledger…it’s open source and public…yet also protects the privacy of users. This is an amazing new invention that solves an age-old problem of having to rely on trusted third parties. The implications are massive.
Bitcoin, the first and most significant application of this blockchain technology, allows for value to be transferred from one party to another securely with no bank or other intermediary involved. This has never been possible before. It represents the future of money…a global currency for the Internet age with no central control authority.
What is your view on the regulatory landscape of these technologies?
Bitcoin does make things easier for criminals, just as shoes, phones and cars do, because new technologies make things easier for everyone. With any new tech, there are negative actions that can occur but we should never let innovation and progress be hampered because of fear.
I think that the best focus, instead of new regulations, is to look to technical solutions for problems we see in the world.
What are your thoughts on investing in bitcoin to diversify your portfolio?
Bitcoin is new, experimental and very risky as an investment. It could change the world and that could be reflected in a massive value increase even to the thousands or tens of thousands of dollars per Bitcoin, but investors should only invest what they can afford to lose. Volatility, regulation and unforeseen problems could cause an investor to lose all the money they put into Bitcoin.
Are you invested/would you consider investing in bitcoin?
Personally I’m overweighted in Bitcoin. As a 20+ year financial advisor, I wouldn’t advise this to someone else but I firmly believe in the technology and its future.