Investing Bitcoin: Why are people buying the cryptocurrency now

They know they are late. They know he is enterprising. And yet they are now buying their first pieces of Bitcoin.

What do they think?

It comes down to FOMO. Their friends. A future where they see themselves bequeathing Bitcoin to their children as if it were family gold.

Those are just are just a few of the reasons we heard when we asked new Bitcoin investors to explain their purchases in a month when the cryptocurrency has danced around record highs.

Conventional wisdom would advise against buying high. But these investors are not clueless. They made clear in conversations that they knew the cryptocurrency could lose value, as it did this week.

Bitcoin gyrations appear to have added momentum to coins such as Ether, which is up nearly 90% in 2021 compared to a Bitcoin advance of 27%.

Speaking of whiplash, a new report released by Citi Private Bank’s Family Offices Lab found that wealthy clients left stock in Alibaba Group Holding Ltd. after Chinese officials opened an investigation into internet giant Jack Ma last year.

Jack Ma emerges for the first time since cracking down on Ant, Alibaba

Jack Ma

Photographer: Marlene Awaad / Bloomberg

The billionaire resurfaced Wednesday for the first time in nearly three months, which sent shares flying. Charlie Wells

Don’t Lose

What we did recently with our money

Throughout the spring, summer and fall, I maintained my mind by cycling around our town. But by Christmas, the roads were covered by ice, and it was time to enter. I didn’t want to give up on my healthy new routine, and I didn’t want to look for Peloton, which retails for around $ 1,900 and carries a monthly subscription fee ($ 39). Instead, I found an instructor (basically a bike stand) on Facebook Marketplace who transformed my road bike into a stationary bike. After a bit of negotiation, it cost me only $ 180. With a $ 40 speedometer and a Garmin bike GPS I already owned, I can easily track how fast I pedal and how many miles I rack up. I’m happy to pedal undirected, but if I changed my mind, the Peloton mobile app ($ 12.99 after a free trial for two months) would offer virtual spin classes. Overall, my furious pursuit of indoor cycling has saved me about $ 2,000 compared to the pricier – albeit popular – alternative. – Sarah Green Carmichael

Opinion

In Bloomberg’s Opinion this week, Barry Ritholtz outlines the five markets drivers in Biden Administration:

My sweetness these days is mainly due to cyclical reasons and momentum, although other data points – admittedly modest – support that view. Let us consider the drivers of these markets in 2021: Market reset; Motivation 2020; 2021 impulse; even more impetus; and taxes.

Read his full reasoning here.

You Ask, We Answer

I lived in the UK for two and a half years and worked in two different companies during my time there. Both companies enrolled me in their respective pension plans.

After leaving the country a year ago now, I want to know if I’m still enrolling. To be clear, I asked for a tax refund and completed the P85 form. As I have two pensions, I also wanted to know my options for managing the money I give? – Andrade hunter, Porto, Portugal

Maintaining an appropriate investment strategy for your pensions is important to ensure that these funds continue to grow. Often when you leave an employer your pension participant status changes from “active” to “paid,” meaning you are no longer an active participant and are unable to make further contributions. Many pension providers are unable or unwilling to maintain relationships with participants who have moved abroad. Yet there are personal pension providers who offer their services to residents outside the UK that could allow you to consolidate your old paid pension schemes.

It is important to seek tax advice from a qualified accountant who has knowledge of the countries double tax treaties. Look for an accountant who is familiar with the UK-Portugal double tax treaty. In time, you may qualify for your pension in the UK at a lower tax rate in Portugal if you qualify for the unusual resident regime and have reached the age of 55 (about to rise to 57 in 2028) that’s when you can access personal pension pots in Britain. – Jeremy Bailey, financial adviser, Tanager Wealth Management

Send us questions about your own financial dilemma [email protected]

Coming up

  • Today we will get data on the startups Unemployed US claims for the past week. Applications for state unemployment benefits the previous week mostly surged since the end of March.
  • Tomorrow’s Statistics Canada releases data on country information retail sales for November. The Canadian economy is to a slow start this year, but economists expect that to change soon.
  • Then on Wednesday Apple Inc. reports on results. The company is planning its first Redesigned iMac desktop in almost a decade.

– Supported by Katharine Gemmell, and Sarah Green Carmichael

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