Why bitcoin is a crucial asset for modern investors

Despite its revolutionary promise, bitcoin’s utility proposition remains misunderstood. In a recent discussion, Roundtable host Rob Nelson, Formidium Co-Founder and Chief Growth Officer Shalin Madan, and Nelson Mullins’ Head of FinTech and Regulatory Practice Richard Levin explored why bitcoin’s message isn’t resonating with key demographics. Their insights revealed a pressing need for better communication and regulatory clarity.

Nelson began the discussion by addressing a critical gap in bitcoin’s message. He stressed that bitcoin’s potential as a savior for those outside of traditional financial systems has not been communicated clearly enough. Nelson emphasized the importance of communicating bitcoin’s benefits to young Americans and those who have difficulty investing through traditional means.

Shalin Madan acknowledged the challenges posed by bad actors in the digital asset space but praised bitcoin for its regulatory clarity and status as a barrier-free asset. Madan noted that while other assets remain prohibitively expensive, bitcoin offers a unique adoption driver that could lead to significant future profits.

Richard Levin offered a regulatory perspective, likening current financial regulations to refereeing modern football with outdated rulebooks. Levin emphasized the need for legislative action to update these regulations. He also warned potential investors about the risks associated with purchasing bitcoin through less regulated platforms. Instead, he suggested considering bitcoin ETPs or ETFs, which provide greater protection under the Securities Investor Protection Act (SIPA).

Levin further elaborated on the importance of investor protection, advising individuals to consult with appropriate investment advisors and highlighting the potential advantages of bitcoin ETFs, which offer a safer investment avenue compared to direct purchases through crypto platforms.