/If You’re Buying Bitcoin, You Want to AVOID This Mistake

If You’re Buying Bitcoin, You Want to AVOID This Mistake

Whether you feel cryptocurrencies are the next big thing or share Warren Buffett’s opinion that the current craze “will come to a bad ending,” you can’t deny cryptocurrencies are the topic du jour in the financial markets. And understandably so, the cryptocurrency market has exploded 3,860% from the $18.3 billion market cap at the beginning of 2017 and is now worth a collective $725 billion.

As with any hot technology, there are companies and individuals that will seek to ride coattails for their own gain. A classic example of the dot-com bubble of the mid/late 1990s, when companies would explode simply by putting the words “dot-com” in their names. It appears this trend is reoccurring with cryptocurrencies, as there’s a nascent trend of companies seeking to rename their companies by integrating crypto-friendly buzzwords or by announcing they’re creating a coin. Investors should be skeptical of these “cryptocompanies.” Two recent examples — Eastman Kodak (NYSE:KODK) and Long Blockchain (NASDAQ:LTEA) — warrant further introspection.

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