The Emergence of Bitcoin as a Digital Store of Value, According to Bona Fide Wealth President

Bitcoin: A Digital Equivalent of Gold

Douglas Boneparth, the president and founder of Bona Fide Wealth, recently expressed his perspective on bitcoin, likening it to a digital equivalent of gold or a store of value in the digital realm. He highlighted the contrasting approaches between traditional trade finance giants like Blackrock and Fidelity, and crypto-focused companies like Bitwise and Vaneck.

Investments That Generate Alpha

In a recent discussion with Eric Balchunas, Bloomberg's senior ETF analyst, on the "Bloomberg ETF IQ" show, Boneparth shed light on the emerging spot bitcoin exchange-traded funds (ETFs) and the classification of bitcoin as an asset class. He described bitcoin as digital gold, emphasizing its role as a store of value. Boneparth acknowledged that the price action of bitcoin may not always align with its store of value status, but he highlighted the demand for alternative investments in portfolios. He stated that clients are always interested in assets that are uncorrelated and have the potential to generate alpha.

Limited Interest from Baby Boomers

When asked about the level of interest in the new spot bitcoin ETF, particularly from the baby boomer generation, Boneparth mentioned that he had not received significant inbound calls. He expressed his hope to see baby boomers who were not initially interested in cryptocurrency move their money to exchanges to invest in bitcoin. However, he noted that his clientele primarily consists of individuals in their mid to late 30s, with whom he had been discussing cryptocurrency and bitcoin education before the availability of investment products.

Native Crypto Companies vs. Established Trade Finance Firms

During the show, host Katie Greifeld asked Boneparth about his views on the differences between native crypto companies like Bitwise and established trade finance firms such as Blackrock and Fidelity. Boneparth mentioned Bitwise's contributions to Bitcoin Core developers, suggesting that for those who believe in blockchain and crypto, a crypto-native fund might be more appealing. However, he concluded that only time will reveal which type of company will come out on top.

Boneparth acknowledged that both native crypto companies and established trade finance firms have robust teams and expertise in the crypto space. He expressed his curiosity to see if it would make sense for investors to choose a native crypto company over a larger, more established player like Blackrock or Fidelity.

What are your thoughts on Douglas Boneparth's statements? Share your opinions in the comments section below.


How To

Investing In Gold vs. Investing In Stocks

Gold investing as an investment vehicle can seem extremely risky these days. This is because most people believe that it is no longer economically profitable to invest gold. This belief comes from the fact most people see gold prices falling due to the global economy. They fear that investing in gold will result in a loss of money. In reality, however, there are still significant benefits that you can get when investing in gold. Here are some examples.

Gold is one of the oldest forms of currency known to man. Its use can be traced back to thousands of years ago. It was used all around the world as a reserve of value. It is still used as a payment method by South Africa and other countries.

You must first decide how much you are willing and able to pay per gram to decide whether or not gold should be your investment. If you're interested in buying gold bullion, it is crucial that you decide how much per gram. You could contact a local jeweler to find out what their current market rate is.

It's also important to note that, although gold prices are down in recent months, the costs of producing it have risen. The price of gold may have fallen, but the production costs haven’t.

It is important to keep in mind the amount you plan to purchase of gold when you're weighing whether or not it is worth your time. If you plan to buy enough gold to cover your wedding rings then it is probably a good idea to wait before buying any more. It is worth considering if you intend to use it for long-term investment. You can profit if you sell your gold at a higher price than you bought it.

We hope you have gained a better understanding about gold as an investment tool. We recommend that you investigate all options before making any major decisions. Only then can you make informed decisions.


By: Jamie Redman
Title: The Emergence of Bitcoin as a Digital Store of Value, According to Bona Fide Wealth President
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Published Date: Tue, 30 Jan 2024 22:30:30 +0000

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