When Bitcoin launched in 2009, it promised to usher in a new era in digital finance. The decentralized nature of the currency offered investors the vision of transparency, security and, above all, profitability. The fact that the chains of onerous regulations and perpetual volatility no longer shackled crypto currency investors, meant freedom to pursue efficiencies on digital exchanges unlike that existing in traditional stock or currency exchanges.
Unfortunately, Bitcoin and many of its peer cryptos have failed to deliver. Perhaps it’s time to take a fresh look at how investors view cryptocurrencies as part of an investment portfolio.
Since their inception, cryptocurrencies have had their share of woes. Misfortunes, misadventure, missteps and regulatory hurdles have all conspired to dissuade investors from making cryptos a mainstream of their portfolios – like ETFs or Mutual Funds. Read more…..
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“What problem does it solve?” That’s the heart of Nobel-prize winning economist Paul Krugman’s skepticism around cryptocurrencies — noting that while he may not understand technology, he does understand monetary economics! — shared as part of a “Let’s Settle This” debate (hosted by Versus by KIO Networks in Mexico City) between him and a16z crypto general partner Katie Kaun in September 2018. [You can see her case for crypto here, and their ensuing debate here.]