Society has been abuzz with a slew of new jargon such as blockchain (originally block chain), decentralised ledgers, forks, hash rates and Initial Coin Offerings (ICO). The euphoria associated with these words stems from the spectacular gains and losses that have been observed in cryptocurrencies such as Bitcoin, Ethereum and Ripple. The nitty gritty of what a cryptocurrency is and how a cryptocurrency works is not the subject of this piece. A quick internet search will yield links and videos that will provide a much more insightful definition/overview than we would be able to provide (for example: https://www.youtube.com/watch?v=l9jOJk30eQs).

If the terms in the opening paragraph and accompanying video had your head spinning, you are by no means alone. The world is largely perplexed and still trying to figure out what is actually going on. Are cryptocurrencies a bubble? An investment opportunity? Or the very end of money as we know it? This special report outlines PortfolioMetrix’s stance on the inherent dangers of treating cryptocurrencies as an investment and urges investors to remain clear-headed about the risks.