Putting money into 10 different alt-coins is not “diversifying”

All markets behave in the same manor, where there is rapid growth there is rapid declines.

Image for post
Image for post

When an entire market collapses, your portfolio will be left broken and maimed. Wealth management isn’t simply diversifying, but comes from experience and is not something you can learn from a book.

“A well-diversified portfolio would comprise, ideally assets whose returns move in the opposite direction”. — Fidelity

The market bloodbath of 2008 should have taught investors how poorly the diversifying strategy really is. Sadly, this isn’t the case and many people lost more than they could have ever bargained for. Groups of seemingly well-diversified investors failed to diversify their way out of a total financial disaster.

What investors didn’t know was that there is a difference between real diversification and the illusion of diversification, the latter being what is sold to the masses which simply perpetuates the illusion of a ‘safe investment’.

When it comes to investing the last thing people want to wage their capital on is a counter intuitive investment, but could it be that they are missing a massive opportunity?

The success of many companies, especially in the early phases, could be thought of as counter intuitive or even downright impossible, but there are always those individuals who see the vision and are able to manifest their company’s success to the confusion of those around them.

We are in an era of business that the world has never seen before, an era of hyperscaling. These businesses explode in a way few people understand and even fewer people invest in. Dreamscape Capital’s expertise lies in early detection and research of emerging technologies and companies that are primed for explosive success.

Image for post
Image for post

Written by

Quantitative Investment Strategies in the Blockchain Sector

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store