• Bitcoin has no intrinsic value, but neither does the dollar. At its most basic, currency is just tokens that we use to confer value, and bitcoin is simply a digital currency or representation of value. Like the dollar, bitcoin has value because people believe it does. When a currency fails, it’s because a nation’s citizens no longer have confidence in it.

• Although there’s a growing interest in bitcoin by people of all ages, surveys show that millennials are the most interested. In one survey, about 25 percent of male millennial (defined as age 18 to 34) respondents expressed an ownership preference for bitcoin over stocks, bonds and gold. Another survey found that 27 percent of millennials view bitcoin as more trustworthy than large banks. This is consistent with data showing millennials’ general distrust of large institutions, and their high comfort level with technology and P2P arrangements in the emerging sharing economy—attitudes that make bitcoin an acceptable alternative to conventional payment systems.

Bitcoin isn’t going away—it’s here to stay. And for many advisors, it may eventually come close to home. There are indications that bitcoin and blockchain technology, when combined with artificial intelligence, may eventually change the way financial advice is delivered and financial products are sold and marketed.

This is by no means a recommendation for advisors to go head-long into bitcoin. But it’s a good idea to get ahead of the popular understanding of it to answer clients’ questions today—and to keep from being left behind tomorrow.

Eric C. Jansen, ChFC, is the founder, president and chief investment officer of Westborough, Mass.-based AspenCross Wealth Management (AWM), which teaches clients how to make smarter financial and investment decisions and to use disruptive technology to help them live the lives they want. AWM also provides cryptocurrency educational services to clients nationwide, and recently began accepting bitcoin as payment for financial planning services.

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