We have a few enthusiasts who have recently started quite a number of bitcoin discussions. My concern echos TD2626 - new investors are being mislead by the discussions and think this is something they should be doing. Quite simply, that is certainly not the case.TD2626 wrote: ↑Fri Sep 08, 2017 5:40 pmShould a wiki article briefly defining and describing bitcoin/cryptocurrency be created? Given the volume of discussion currently in the forum about it, it is surprising that there is no mention of it in the wiki. (I looked around but found nothing; my apologies if I missed something obvious).
Such an article could describe briefly and factually what cryptocurrency is, and what the technology behind it is (blockchain). The article would need to emphasize why it is a speculative and risky gamble not consistent with general Boglehead long-term investment principles.
Note: I feel that bitcoin/cryptocurrency is an excessively risky, speculative gamble that long-term investors should avoid. In my opinion, it is unsuitable for use as an investment or for inclusion in a long term portfolio – and it is inconsistent with Boglehead principles. (Also, I know little about this area and have little interest in it. Those with more knowledge could possibly write a more balanced article).
Only invest in bitcoin if, and only if:
- You know what a bitcoin is (Never invest in anything you don't understand)
- You have the ability, willingness, and need, to take on this very risky product
First and foremost, the wiki is an investing resource. It is there to educate investors to understand not only what to do, but what not to do. Bitcoins are the latter.
The intent of the article is to explain bitcoins from an investing and financial perspective. It should be at a sufficiently high level that those not familiar with bitcoins will understand the content.
The article is not a tutorial on bitcoin technology. There are more than enough articles elsewhere. We can give a brief overview and link to the relevant articles for further reading.
I've included references to Investor Alerts from the SEC, FINRA (Financial Industry Regulatory Authority) as they are the most credible, unbiased sources I could find on bitcoin. When the SEC and FINRA issue alerts, pay attention. Content from those alerts will be incorporated into the article.
There is a lot of forum discussion on taxation of bitcoins. Since the wiki should only utilize information from credible sources, I've included content from the IRS - which has final say on the matter.
That being said, the above is only my opinion and may not represent a forum consensus. It's a starting point for the discussion.
Comments / questions / corrections are welcome. All wiki editors are welcome to edit the page directly.
Members can post content here and a wiki editor (including myself) will update the page on your behalf. If we don't have a consensus on content, we can discuss it here.
Update: Revised wiki article link.