Finance & Fury Podcast

Today’s question comes from Richie, who asks, “Have you been following the Bitcoin ETF at all? If so, are you able to do an episode on this and if it is worth looking into?” Thanks for the question, Richie…and yes in fact I actually have been following it. I noticed that the price jumped up about 20% on the news that the SEC in the US was considering allowing ETFs for Bitcoin. Crypto currency fascinates me, but not as an investment option. That is, I like the technology but haven’t bought any as an investment option. To start with why, I want to break down the ‘currency’ part in crypto currency – Currency is money: Comparing Bitcoin to money Functions of money Unit of account – Divisible, identifiable amounts Medium of Exchange – Can you use it for transactions for the purchase of goods and services Store of value – Is worth something now and will be in 10 years (food isn’t a good currency long term). Can I hold onto this to be able to exchange it in the future? Characteristics of money fall under this D