14 Apr 2022
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
Bitcoin has become the 10 most valuable asset globally.
The cryptocurrency market is valued at US$1.9 trillion and Bitcoins makes up about 41% of the cryptocurrency market.
If you are a student of Benjamin Graham and his Value Investing principles then you will quickly come to understand that Bitcoin is in fact a collectable and thanks to technology, this collectable has been able to be divided into tiny units which can be bought and sold for a price.
The concept of Bitcoin has now also helped traditional collectables such as paintings to be unitised into a market just like cryptocurrency trading.
Click for art.
The thing to remember about buying collectables is that they rely on scarcity and as long as there is a group who want to trade in this limited item there will be a price.
Once there is no longer a group that wants to trade in this collectable the price will evaporate.
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