PortfolioMetrix head of investments Brandon Zietsman has said that investors should be cautious when buying cryptocurrency.<\/p>\n
According to a report from the Sunday Times, Zietsman said investing in cryptocurrency will always be a gamble – and that investors should only invest the portion of their wealth they would normally allocate to their gambling habit.<\/p>\n
“You may get it spectacularly right and retire a decade or two early, but you will, at some point, get it very, very, very spectacularly wrong,” said Zietsman.<\/p>\n
He said that when buyers value cryptocurrencies, they should evaluate the potential economic return, scarcity, and utility of each token.<\/p>\n
Unlike other asset classes, cryptocurrencies have no economic return and the ability to create new coins makes the supply of cryptocurrency practically unlimited, he said.<\/p>\n
Old Mutual investment analyst Zain Wilson said cryptocurrencies are regarded as un-investible, due to their unclear definition under South African regulation.<\/p>\n
Wilson said it is not clear whether cryptocurrencies are considered currencies or commodities, and the tax implications for any profits are difficult to predict.<\/p>\n
RMB blockchain lead Farzam Ehsani predicted that cryptocurrency prices will increase over time, but there will be a high amount of volatility.<\/p>\n
He said that of the hordes of initiatives attempting to raise capital through initial coin offerings, many “will end in tears”.<\/p>\n
The price of Bitcoin is affected heavily by the imposing of regulation, and the value of the coin recently plummeted<\/a> <\/strong>following another wave of regulation concerns.<\/p>\n Certain countries have opted to embrace cryptocurrencies as a means of exchange, however, with Germany recognising digital currency as an\u00a0equivalent to legal tender for tax purposes<\/a><\/strong>.<\/p>\n PortfolioMetrix said investors should be cautious when buying cryptocurrency.<\/p>\n","protected":false},"author":23,"featured_media":249489,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44696],"tags":[191,35,22335,18024,2530],"class_list":["post-251849","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-cryptocurrency","tag-headline","tag-investment","tag-old-mutual","tag-rmb"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/251849"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=251849"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/251849\/revisions"}],"predecessor-version":[{"id":251857,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/251849\/revisions\/251857"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/249489"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=251849"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=251849"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=251849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Now read:\u00a0They can take your land, but they can\u2019t take your Bitcoin<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"