Bitcoin is the current topic of discussion in the investment world, as its price has rapidly risen from nine hundred dollars to sixteen thousand dollars in the past year. But many people are still confused by what exactly Bitcoin is. Bitcoin is a cryptocurrency, which means it is a decentralized currency. The reason this is desirable is because they aren’t controlled by a government, are more difficult to steal than cash, and don’t have anything to do with the stock market or investing.
The Oxford Club, a private, international network of entrepreneurs and investors who have had great success, do believe there is some potential in Bitcoin. However, they realize it is not an investment for everyone. For example, if you’re still trying to figure out how to pay for tuition or retirement, the risk involved with Bitcoin is probably too high for you. The Oxford Club maintains that Bitcoin is a very speculative investment, and should only make up a very small percentage of your overall investment portfolio.
In fact, The Oxford Club publishes a framework called the Oxford Wealth Pyramid. The framework is designed to help investors understand how they should allocate their funds. By using this pyramid from The Oxford Club, you’ll see they recommend putting Bitcoin in the smallest section.
The Oxford Club also recommends having a solid foundational investment portfolio as well as some promising dividend stocks. Once an investor reaches this stage, then they can consider allocating a small percentage of their funds into Bitcoin investments.
Adam Sharp, Early Investing co-founder and The Oxford Club’s cryptocurrency expert, projects Bitcoin will reach $100,000 in value by 2019. There’s a lot of excitement around Bitcoin, but it is also the most speculative and risky investment available today. If you respect The Oxford Club’s opinion, then you agree its important to have a solid foundation of investments, and only then can you start to allocate small amounts to Bitcoin.
Learn more about the Oxford Club on Twitter @The_Oxford_Club