Though there is risk in both speculative investing and investing, a good way to differentiate is thinking of speculative as a high risk investment, or a ‘get rich quick scheme’.  Think of investing as being lower risk, more fundamentally based and analysis driven.

​

This leads to the conversation of bitcoin. Fed Chair Janet Yellen calls it being a “highly speculative asset”, “not a stable store of value and doesn’t constitute legal tender”. Though there is value in block chain there really isn’t an obvious way of valuing it. It could be worth $1 or $1 million.

​

With the Federal Reserve not seriously considering bitcoin as a possibility for  future currency, I like to think of investing in bitcoin like trading baseball cards. The value of those baseball cards are in the eye of the beholder.

​