Cryptocurrency Investors Worry, Wait After Bitcoin Price Drop

Excerpt below:

In the wake of this week’s crash, the top post in the Reddit forum /r/CryptoCurrency was about how to contact a suicide hotline, apparently a response to distress on the part of recent investors.

Some economists say this is a familiar pattern.

“Twenty years ago, the technology stocks and new Internet stocks achieved an excess valuation of $7 trillion because of speculation,” said David Kotok, chairman and chief investment officer of Cumberland Advisors. “The prices of shares were bid up to very high levels. When they collapsed, investors … they got very hurt. We see similar characteristics in cryptocurrencies right now.”

Bitcoin investors know this trend as well.

“I think [cryptocurrencies] are highly speculative,” Kotok said. “Putting money into cryptocurrencies is a speculative thing to do. You might make a profit, but what we are seeing is people who — in the last month or two — put money into bitcoin, are having trouble getting cash back when they sell and are now watching the price fall and panicking.”

Read the complete article at WPSU Radio




Longboat Kiwanis Club hosts financial expert to discuss Bitcoin

An expert on one of the world’s suddenly hot, but still mystifying, investments is the scheduled luncheon speaker at the Kiwanis Club of Longboat Key’s Jan. 18 meeting at Portofino Restaurant at the Longboat Key Club.

David Kotok, chairman and chief investment officer of Sarasota based Cumberland Advisors, will discuss Bitcoin, Blockchain and other financial topics at his 11:45 a.m. presentation.

Read full article at YourObserver.com




Wealth Managers Are Being Inundated With Calls About Bitcoin

At 74, Cumberland Advisors’ David Kotok has guided wealthy clients through a long career’s worth of bubbles and crashes. Now he’s being inundated with questions about the latest soaring asset to confound investors — bitcoin.

“Clients bring up bitcoin all the time,” said Kotok. “They think it’s cool. It has the newness, which is attractive to some people, though others would say newness is a risk they don’t want to take.”

Read full article here: https://www.bloomberg.com




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