CARSOVERVIEW

You don’t need to be rich to invest in cryptocurrencies. ❏ Access to cryptocurrency is 24/7/365. ❏ It is available to anyone in the world as long as they have access to the internet. ❏ Since there is no central authority controlling access, anyone can participate in cryptocurrency/blockchain activities. ❏ There are usually little to no transaction fees, when compared to traditional banking. ❏ International transactions take place much faster when compared to traditional international banking transactions. The same is usually true for domestic transactions since there is no such thing as a ‘business day’ in the world of cryptocurrency. ❏ The blockchain on which cryptocurrencies operate make it nearly impossible to double spend or counterfeit transactions. ❏ Since cryptocurrencies run on a decentralized blockchains, there can’t be a central point of failure such as might happen with a traditional banking system. Risks of Cryptocurrency ❏ Cryptocurrencies are not yet considered to be widely accepted and are not designated as legal tender in the United States and most other countries (at the time of writing). However, cryptocurrency is starting to become more mainstream with some major corporations announcing large investments in bitcoin. Some companies allow for payment in cryptocurrency; you can now purchase a Tesla with bitcoin. Some financial services companies are looking into or have started dealing in cryptocurrency. ❏ Cryptocurrencies currently lack regulations and consumer protections that legal tender (fiat) currencies have. For example, in the US, a credit card holder is only responsible for up to $50 on unauthorized transactions, and bank depositors are insured up to $250,000. The Federal Deposit Insurance Corporation (FDIC) does not provide any cryptocurrency insurance. ❏ It is difficult to know how future government regulations will impact cryptocurrencies. ❏ The cryptocurrency environment is constantly evolving; what is true today may not be true tomorrow. 9 Risks of Cryptocurrency ❏ The value of cryptocurrencies can fluctuate greatly, sometimes from day to day. Below is some history on the price of one bitcoin. ❏ 12/18/17 $19,114.20 ❏ 12/17/18 $ 3,545.86 ❏ 12/18/19 $ 7,276.80 ❏ 12/18/20 $23,137.96 ❏ 01/08/21 $40,797.61 ❏ 01/27/21 $30,432.55 ❏ 02/17/21 $52,079.20