Dumb Investment Of The Week: Bitcoin Investment Trust

We have never been a fan of so-called digital cryptocurrencies, as they have mostly remained outside the realm of traditional investments. That has changed with the introduction of the Bitcoin Investment Trust (OTCQX:GBTC), traded on the OTC markets, and the ARK Web x.0 ETF (NYSEARCA:ARKW), which has an approximately 2% allocation to bitcoins and is traded on the NASDAQ exchange. Additionally, the Winklevoss twins, through the Winklevoss Bitcoin Trust, appear to be getting close to listing a bitcoin ETF on NASDAQ. This would make “investing” in bitcoins accessible to just about every investor.

The bitcoin will be a failure as a currency due to several inherent flaws that make it unsuitable for use in commercial transactions over the long run. For that reason, the Winklevoss Bitcoin Trust, and by extension bitcoins, are our Dumb Investment of the Week.

Understanding Modern Money

To understand the flaws in bitcoin, we first need to understand why something would be used as a currency and what gives currency its value. Let’s use the US dollar as an example.

The most important aspect of the US dollar that

Read more ... source: TheBitcoinNews

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