Bitcoin Surges — But How Real Is It?   

The currency’s latest surge came when Wall Street designated it an exchange-traded fund (ETF), which allows investors to trade in the currency indirectly, without actually owning any. It was another milestone in the gradual mainstreaming of a currency that until very recently was viewed as an esoteric, futuristic asset with no practical use.

Bitcoin’s surge is even more impressive given that China has imposed a series of restrictions on mining and trading the currency over the past few months. Although it is now almost impossible for Chinese to buy, trade, or mine bitcoin, the currency grows daily. And on September 7, El Salvador became the first country to adopt bitcoin as a legal currency.

Of course, many people invested in bitcoin last year in hopes of getting rich quickly, only for its price to tumble 50 percent in May. Basically, bitcoin’s volatility means that its rise won’t be linear, and at times it will crash badly. So what is an investor to do?

An Israeli crypto advisor, who asked to be identified only as Nir, told Mishpacha, “Bitcoin has long ceased to be the province of computer geeks living in basements. It has become a trillion-dollar market. Some of the richest people on the planet have invested in it.”