Are Cryptocurrencies a Good Investment?

Making the investment case for cryptocurrencies is as hazardous as doing so for gold but they do have a commercial purpose, which puts a floor under prices

John Rekenthaler 11 March, 2019 | 2:01PM

Bitcoin cryptocurrency

Bitcoin became desirable because people wished to buy it, and even more desirable when its price soared. The popular basis for owning cryptocurrency has been, quite simply, because today's quotes will be higher tomorrow.

What is cryptocurrency's role in a conventional long-term portfolio? In addition to the centrepiece assets of stocks and bonds, investors increasingly hold alternatives, either with the hopes of boosting returns or protecting against risk. What place, if any, should cryptocurrency have in the "explore" portion of a portfolio?

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About Author

John Rekenthaler

John Rekenthaler  John Rekenthaler is vice president of research for Morningstar.

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