Despite all the headlines, few people could tell you what a Bitcoin miner does or what a decentralized network means, and formulating expectations from an investment standpoint is even more difficult. How should investors view the exploding area of cryptocurrencies and whether it would have any impact on a long-term investment plan?
This Issue Brief from Dimensional Fund Advisors — To Bit or Not To Bit: What Should Investors Make of Bitcoin Mania? — seeks to educate investors on how these new types of electronic money work, including their expected returns compared to stocks and bonds.
Watch our recent Making Sense of Markets video for perspective on the major headlines during the past quarter, including Bitcoin and Blockchain technologies.