The Hammonton Gazette 09/12/18 Edition | Page 5

Financial professionals speak about cryptocurrency Page 4 • Wednesday, September 12, 2018 • The Hammonton Gazette CRYPTO, from Page 1 database that is maintained by a network of computers known as blockchain, which consists of a growing list of transaction records (also known as “blocks”) that are linked and secured through the use strong cryptography. This public database is stored on computers worldwide and lists every cryptocurrency transaction process that is taking place. This transaction data cannot be altered due to the fact that cryptocurrencies are secured by math (cryptography), rather than by people or trust, according to reports. The use of blockchain eliminated the need for a true, third party—such as a financial institution—to verify peer-to-peer digital transactions, and also eliminated the possibility of digital assets being double-spent, which was previously difficult to prevent due to the relative ease of reproducing most digital information, reports said. Bitcoin was the first form of cryptocurrency to perfect the use of blockchain to create the world’s first fully-functional digital currency, and it redefined the way people use money. This breakthrough caused a massive surge in the global cryptocurrency market, which resulted in Bitcoin’s price nearly reaching $20,000 per unit in December 2017 and led to the rise of more than 1,800 similar forms of cryptocurrency whose total market value reached an all-time high of $829 billion in January 2018 according to published reports. Published reports said as cryptocurrencies continued to thrive, they attracted more mainstream attention and interest from consumers. Bitcoin, unlike most cryptocurrencies, can even now be bought and sold on popular online platforms like Coinbase and Square Inc.’s Cash app. However, as enticing as the crypto market may seem, it is a complex entity that possesses great volatility and carries several inherent risks that prospective investors need to be aware of before they start putting money into the market. As of August 2018, cryptocurrencies are not considered securities (tradable financial assets), and are therefore beyond the jurisdiction of the U.S. Securities and Exchange Commission (SEC), which has advised against investing in cryptocurrencies due to their lack of core fundamentals like cash flows and profits, which support the valuation of cryptocurrency and allow investors to track and forecast market trends. Due to this lack of fundamentals in the crypto market, most financial professionals view cryptocurrencies as highly speculative and volatile markets to invest in. James Siwek, a financial advisor for Edward Jones in Hammonton, said his firm does not offer a way to purchase or hold cryptocurrencies, or futures contracts for cryptocurrencies, due to their risky, unpredictable nature and the relatively new and unproven use of blockchain that maintains them. “Basically, it’s kind of like gambling. So, it’s not really investing—unless you know something I don’t know about cryptocurrencies. What is it even based on? It’s based on a technology that basically hasn’t been fully tested yet,” Siwek said. Siwek said that blockchain does See CuRRENCY, Page 14 SOLD! 800 S. White Horse Pike (Crowley Center), P.O. Box 1119 • Hammonton • 561-0505 • [email protected] • www.CrowleyCarr.com Congratulations PAUL NILSON on the purchase of your home! Thank you for putting your trust in Crowley & Carr. “The Best Place in Town to Find the Best Place in Town.” With nearly 30 years in business, who better to guide you on all your Real Estate needs than the CROWLEY & CARR REAL ESTATE TEAM!