Why now is the time to educate yourself on the blockchain and crypto-asset ecosystem before investing in cryptocurrencies
By Iconic Holding on The Capital
“Education is the passport to the future, for tomorrow belongs to those who prepare for it today” — Malcolm X.
There is a lot of misinformation in the public domain around cryptocurrencies. That, combined, with a, as of yet, largely unregulated industry, makes financial institutions and savvy investors a little nervous when investing in cryptocurrencies. Understandably so, yet, 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. Now is the time to educate yourself on crypto-assets to alleviate ill-conceived concerns
It’s one thing for a retail investor to buy Bitcoin because everyone is talking about it, and they want to make a small 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 spoken with asset managers and investment professionals before who 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 may have passed.
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 justified writing an investment opportunity off, one should at least understand more about it first.
As an investor, if you are thinking about investing in cryptocurrencies (or at least curious to know more), you should understand, at a minimum, a few key points:
1. Blockchain technology and its use cases
2. The link between blockchain and crypto assets
3. Value drivers of today’s crypto assets
4. How all financial instruments will inevitably become crypto assets
5. The impact of a crypto allocation to various portfolio types
Crypto assets are one of the fastest-growing asset classes 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. 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 understanding before investment. We’re on a mission to educate and help drive a global understanding of crypto by helping financial institutions, family offices, and high net worth individuals make more informed investment decisions in this alternative asset class.
We want you to be prepared for tomorrow.
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 workshops@iconicholding.com.
By Sara Sabin, Business Development, Iconic Holding
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This article is strictly for educational purposes and isn’t to be construed as financial advice.
