David Vomund has been an outspoken critic of cryptocurrencies for some time. He is critical of the lack of regulation, the difficulty of buying them, and the fact that there is no FDIC or SIPC coverage.
However, there may be a solution coming soon. The SEC is considering approving Bitcoin exchange-traded funds (ETFs) that track the spot price rather than the futures price. BlackRock, Invesco, and ARK have all filed applications.
If approved, this could open up Bitcoin to a wide range of investors. It would become as easy to buy as any index fund or stock, and more demand would likely lead to higher prices.
However, David Vomund cautions investors not to forget that Bitcoin is still based on the Greater Fool Theory. There are no earnings or dividends, and its value is based on the perception of its worth. Long term, he advises caution.
In conclusion, the introduction of spot Bitcoin ETFs could lead to higher prices, but investors should remember that Bitcoin has no intrinsic value. For more information, visit http://www.VomundInvestments.com or call 775-832-8555.