Tag: cryptocurrency

In part two of their cryptocurrency series, YFP Co-Founders Tim Baker and Tim Ulbrich discuss spot Bitcoin ETFs, the IRS’s stance on cryptocurrency, and strategies for incorporating digital assets into long-term portfolios.

This episode is brought to you by First Horizon.

Episode Summary

This week in part two of  the series on cryptocurrency and digital assets, YFP Co-Founders Tim Baker, CFP and Tim Ulbrich, PharmD explore the recent introduction of spot Bitcoin ETFs and how they differ from investing directly in Bitcoin. Tim and Tim also discuss the IRS’s perspective on cryptocurrency and key considerations for including digital assets in your portfolio as part of a long-term investment strategy.

Key Points from the Episode

• Introduction to Cryptocurrency and Digital Assets Series [0:00]
• Role of Digital Assets in Portfolio Diversification [3:12]
• Investing in Bitcoin vs. Bitcoin Spot ETFs [8:52]
• Tax Considerations for Digital Assets [13:43]
• Use Cases and Future of Digital Assets [23:13]
• Fee Considerations for Digital Assets [24:50]
• Conclusion and Next Steps [30:41]

Episode Highlights

“There’s a lot of things that digital assets can solve. If you’re in countries where you have hyperinflation, where the price of bread is double or triple in the morning than what it is in the afternoon, something like a stable currency is really attractive to you.” – Tim Baker [12:18]

“Digital assets are taxed as property, so the IRS looks at it as property. So, and that’s kind of one of the rubs here when Bitcoin was kind of introduced. It was supposed to replace the dollar, or that was the idea. And again, I do think that a digital asset will replace the dollar. It’s just not going to – it won’t be Bitcoin.” – Tim Baker [13:45]

Links Mentioned in Today’s Episode

• YFP Podcast #386: Cryptocurrency & Digital Assets: Definitions, Origins, and Risks
• First Horizon Pharmacist Home Loan 
• YFP Book a Discovery Call
• YFP Disclaimer
• Ask a financial question to YFP
• Subscribe to the YFP Newsletter
• Tim Ulbrich on LinkedIn
• Tim Baker on LinkedIn
• YFP on Instagram
• YFP Facebook Group

Episode Transcript

The transcript will be included following the release the episode.

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Tim Ulbrich and Tim Baker discuss cryptocurrency, examining its advantages like decentralization and transparency and risks such as volatility and regulatory uncertainty.

Episode Summary

In this first episode of a two-part series on cryptocurrency and digital assets, YFP Co-Founders Tim Ulbrich and Tim Baker explore the world of digital finance and its relevance in today’s financial landscape. Tim and Tim unpack essential terms and explore how the 2008 financial crisis served as a catalyst for the rise of cryptocurrency, with Bitcoin leading the charge.

The discussion highlights the unique advantages of digital assets, such as decentralization, transparency, and their fixed supply, contrasting these features with traditional currencies. Tim and Tim also address critical risks, including market volatility, security concerns, and regulatory uncertainties.

Key Points from the Episode

• Overview of Digital Assets and Cryptocurrency [2:26]
• Defining Digital Assets and Their Characteristics [4:25]
• The Financial Crisis of 2008 and Its Impact on Digital Assets [8:29]
• Bitcoin and Blockchain Technology [14:13]
• Advantages and Risks of Digital Assets [18:43]
• Regulatory Concerns and Security Risks [18:55]
• Volatility and Comparison to Traditional Investments [19:12]
• Conclusion and Preview of Future Episodes [34:33]

Episode Highlights

“There’s a lot of people that invest in more mutual funds in their 401k that don’t fully understand how mutual funds work. So I think that’s where an advisor or somebody that you trust can be a guide in this. But I do think that something like this, with it being new, doing some research and understanding what that looks like is important.” -Tim Baker [7:59]

“If you look at the US dollar, it used to be backed by the gold standard, but once it moved to a fiat currency, it derives value from the trust and the issue in government. Whereas Bitcoin derives value from the trust in the decentralized system.” – Tim Baker [24:05]

“The US dollar gets value from the widespread acceptance as legal tender in the United States, but even across the world, like dollars are valuable anywhere or in most places. Whereas, you know, Bitcoin, its acceptance is by its users and people that believe that this is the future.” -Tim Baker [24:46]

“I think the biggest risk is the volatility. So, you know, digital assets are highly volatile and can experience dramatic price swings in short periods.” – Tim Baker [30:18]

Links Mentioned in Today’s Episode

• Whitepaper “Bitcoin: A Peer-to-Peer Electronic Cash System”
• Too Big to Fail by Andrew Ross Sorkin
• YFP Book a Discovery Call
• YFP Disclaimer
• Ask a financial question to YFP
• Subscribe to the YFP Newsletter
• Tim Ulbrich on LinkedIn
• Tim Baker on LinkedIn
• YFP on Instagram
• YFP Facebook Group

Episode Transcript

The transcript will be included following the release the episode.

Recent Posts

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