Investors understand that putting their money into an asset brings an element of risk. The amount of risk is based on a variety of factors, including market volatility, your need for liquidity, and more.
The goal is always to find that balance of risk and reward – an investment that offers solid returns at a lower level of risk. One investment that hits the mark is Bitcoin, explains Rajat Soni.
A Chartered Financial Analyst and former real estate agent, he has since become a finance educator.
“I worked in finance for about 10 years as a fixed income analyst,” he explains. “The work I was doing wasn’t really having that big of an impact, at least in my opinion, and I thought ‘I have to do something a little bit different.’”
He started posting on social media about personal finance and financial literacy, helping individuals learn how to invest and how to save. Eventually, his Instagram, YouTube, and Twitter (now X) communities grew to the point that he began doing webinars, newsletters, and more as his fulltime job.
To offer the best possible advice on financial matters, particularly investing for growth, Rajat did a lot of deep diving into all manner of data. He studied stocks and real estate, of course, but eventually he began studying Bitcoin.
He read books and articles, listened to podcasts and interviews with digital asset experts. He studied the positives and also paid attention to dissenting voices. Rajat eventually did what a good analyst does: he weighed the data and came to his own conclusions about the value of Bitcoin.
“Eventually I started just posting about Bitcoin only,” he says. “I stopped posting about stocks or about real estate. I used to be a real estate agent, and I wanted to buy my own properties. I wanted to buy rental properties because I thought the cash flow would be great.”
But once he figured out that Bitcoin’s risk versus reward was a lot less volatile than other options, he became a true believer.
He’s not the only one who’s taken the leap into digital assets. McQuarrie-Highland Canada is a purely Bitcoin Treasury Company, holding only Bitcoin to achieve its financial goals, preserve capital, and benefit its investors.
Samuel Halloran of McQuarrie-Highland Canada says they have an opportunity for more savvy investors who want to add allocations to their portfolio with steady returns and controlled risk.
“We work with experts like Rajat to make the best decisions and advise our investors on best practices related to advanced capital allocation strategies,” he explains.
Assessing the risks
Rajat acknowledges that it can take time to really understand the novel asset class and how it makes sense to invest in it properly. He also makes it clear that he’s only talking about pure Bitcoin, not one of the many alternative digital currencies that are unproven in the market.
He says there’s a lot of chatter to sort through when it comes to digital currencies. He takes time to verify his sources before sharing advice or information, making sure everything he posts or shares is factual – especially when discussing trends in the market.
One benefit of Bitcoin, he says, is that it increases your purchasing power while remaining protected from many unforeseen circumstances: this includes environmental changes that could damage property, the risk of the government seizing assets, straightforward theft, and other risks associated with land, precious metals, and other traditional financial investments.
“There can be massive risks with stocks,” says Rajat. Companies have executives and products, and those can fail, driving down stock value; government decisions and restrictions can affect stock value, or limit your ability to buy and sell.
Real estate can bring its own risks, including liability for accidents that happen on your property, as well as ongoing fees for maintenance, insurance, and property tax.
“The only risks that Bitcoin has are the same as the other investments: liquidity and market volatility,” explains Rajat.
Having seen steady growth over the years, Bitcoin is now the fifth most valuable investment on the planet, according to market capitalization numbers released in early May. It is absolutely scarce and steadily increasing in demand, notes Samuel of McQuarrie-Highland Canada, meaning this may be the perfect time to start the conversation and consider a possible allocation in your portfolio.
TEXT CHRIS OCCHIUZZI
