REGINA — A Saskatchewan condo corporation has purchased thousands of dollars worth of bitcoin in hopes of eventually eliminating fees for residents, but experts say such cryptocurrency investments come with risks.
Regina-based Thornton Place Condominium Corporation says it recently bought 0.4 bitcoin for $25,000 through cryptocurrency platform Kraken and has allocated $700 per month for future purchases of the cryptocurrency.
Condo board treasurer Howard Ulmer says the Bitcoin investment idea came from a former board member and was designed to be conservative in order to mitigate risks.
Ulmer says the investment amounts to about 5 per cent of the corporation’s reserves and 6 per cent of its monthly operating fund.
However, University of Toronto finance professor Lisa Kramer warns that cryptocurrencies can be volatile and it is easy for investments in Bitcoin to quickly erode in value.
She thinks it was wise for the board to limit its exposure to Bitcoin, but says she hopes other condo corporations don’t use the practice because of the risks it involves.
This report by The Canadian Press was first published March 17, 2021.
The Canadian Press