I'm going drop a risk-grenade in the room and walk out.
When you deal w/publicly-traded securities, there's regulation. There's also (generally) liquidity and some sort of market value even if markets sell off. Yes, technically all stocks and all funds could go to zero. I think if that were to occur, society/civilization as we know it would cease to exist. Those left would be rendered back to hunter-gatherer status.
There's an unknown risk remaining for crypto markets and all associated coins, tokens, and investments.
What happens in the event that regulators step in and decide to shut the whole thing down?
Where's the risk-hedge for that?
This is why we don't advise on crypto-related assets.
This is likely an unpopular view from a Gen X/Y-founded firm.
Strangely, I posted a note to LinkedIn and hit save, and then the news article popped up confirming what we knew might be coming - the liquidation of the 2nd largest crypto bank, Silvergate Capital. We’ve known for a while that they’ve been in deep water. But not even a Fed bailout loan of $4.3 billion earlier this year could save them.
Take it seriously. Note that Silvergate, in addition to quoting losses as a reason for liquidating, is also quoting regulatory conditions.
Is this a Lehman Brothers moment for the space? Time will tell.
I still can't make sense of these #'s in crypto, and I don't know how you hedge the risk of total implosion for that portion/% of a client's allocation. And for that reason, I'm out.
*Note - we don't discourage. We just don't offer oversight/guidance/advice on that part of a client's portfolio.
YOYO (You're On Your Own) on that one.
Crypto Outro Manifesto | The Daily Mission podcast - Listen or read transcript on Metacast
