The term Bitcoin brings up visions of free-floating electronic money that doesn’t have a central banking system or anything else attached to it. Even though Bitcoin use is risky, the risk hasn’t prevented Bitcoins from becoming one of the most popular phenomena’s of the 21st century. Bitcoins don’t meet the standards or the definition of a currency, but on the Internet they are worth their weight in computer gold. Bitcoins are used to buy products, services and other currencies on the Internet, and the fact that they are often used in illegal activities has stirred the interest of law enforcement personnel. In 2013, the FBI seized 144,000 Bitcoins because they were being used in drug trafficking.
Brad Reifler, the founder and CEO of Forefront Capital. Forefront Capital is an investment management and financial services firm that thinks Bitcoins are irrelevant when it comes to investing and other financial transactions, according to an article published by Inquisitr.com. Reifler has 30 years of experience in the hedge fund industry, and in merger and acquisitions. Brad tells his clients not to invest in Bitcoins because they have no substance. They function in a virtual reality that is not connected to the objective world of investments.
Mr. Reifler started Forefront Capital so small investors had a chance to invest like hedge fund managers invest. Bitcoins and middle-class investors aren’t a good match, according to Reifler. There are so many other investments that can produce decent returns, according to Reifler. Bitcoins represent a modern version of smoke and mirror investing, according to Reifler, and Brad has been down that road before.
Brad invested in a college fund when his kids were young that promised decent returns, but when the time came to cash in there wasn’t enough money in the fund to pay for college. That’s when Reifler decided to start Forefront Capital.
The use of Bitcoins is not going away, according to Reifler, but small investors should be careful and not jump into that market without doing a considerable amount of research. Investing is a risky business, but smart investors try to reduce the risk by doing enough research so their investments are not like throwing dice in Las Vegas. Bitcoins are a gamble and Reifler admits people are winning, but the winning won’t last long. Investing is a long-term business not an “in and then out” gamble.
Not everyone agrees with Reifler, but the smart investors do agree and that could mean the beginning of the end for the mighty Bitcoin explosion.