Bitcoin has suddenly come under the limelight. Some are criticizing it for the lack of regulation and the unprecedented growth. Warren Buffett even went ahead and called it a gambling device. But is Bitcoin a gamble or a form of investment? For this, you need to understand the nature of alternative investments. It is not every day you hear about alternative investments because it is not a conventional investment, like a stock or a bond. But it has its pros and cons, and ETF houses are bringing these alternatives to a retail investor.
What is an alternative investment?
Alternative investments include gold, commodity, real estate, hedge fund, or private equity. Generally, the top brass of the society invests in such alternative assets given the challenges and a keen eye for detail they need. These investments need risk-taking ability, which means even if you lose this money, it won’t impact your wealth.
Why are alternative investments risky? Well, they…