There is a lot of misinformation in the public domain around cryptocurrencies. That, combined, with an, as yet, largely unregulated industry, makes financial institutions and savvy investors, a little nervous when investing into cryptocurrencies. Understandably so. Any prudent investor should understand and have an interest in the assets that form part of his or her investment portfolio.
It’s natural, after all, to be scared about what we don’t understand.
It’s one thing for a retail investor to buy Bitcoin because everyone is talking about it and they want to take a bet. For someone just taking a speculative position, the education piece might not be as important.
However, it’s natural for institutions and high net worth individuals to stick to what they know best. I’ve talked to asset managers and investment professionals before, that simply stated, ‘we don’t have the expertise in house, and we don’t foresee a need to bring in that expertise any time soon. We invest in what we know’. I would argue that by the time that this expertise is developed in-house, the best time to enter the market will have been and gone.
By choosing to educate yourself too late, there is a lost opportunity to enter a burgeoning market before mass adoption takes place. I would argue that ‘better the devil you know’ is not actually better at all.
In order to be comfortable writing an investment opportunity off, at least, understand more about it first.
As an investor, thinking about investing into cryptocurrencies (or at least curious to know more), you need to understand, at a minimum, a few key points:
- Blockchain and its use cases,
- The link between blockchain and crypto-assets,
- Value drivers of today’s crypto assets (and how to determine value),
- How financial instruments are becoming crypto assets,
- What impact does a crypto asset allocation have on any portfolio?
Crypto assets are the fastest growing asset class in the market today
Leading crypto assets such as Bitcoin and Ethereum have established themselves as unique, non-correlated assets with distinct value drivers. They offer an opportunity for investors, acting as a hedging instrument and alpha-generator for both conservatively and aggressively structured portfolios. With financial instruments such as equities, debt and even real estate becoming tokenized, it is imperative that now, more than ever, investors understand this unique asset class, its value drivers, and the inevitable impact on global financial markets.
We understand the importance of education
We, at Iconic, understand the importance of education before investment. We’re on a mission to do just that. Helping financial institutions, family offices and high net worth individuals to make better quality, more informed investment decisions, on this alternative asset class.
We want you to be prepared for tomorrow.
“Education is the passport to the future, for tomorrow belongs to those who prepare for it today” – Malcolm X.
Do you want to learn more?
We are offering private, complimentary online workshops for family offices and financial institutions, who are ready to learn more!
Book your complimentary workshop, by emailing us at [email protected]
