New kid on the blockchain?

The fintech industry is undergoing constant and often rapid change, and it can be a struggle to keep pace and learn an entirely new lexicon. You don’t need to be an expert in blockchain technology to get a little more comfortable with the popular database.

Blockchain technology is an emerging platform that allows all transactions to be verified and stored across all stakeholders in public databases without a singular central authority. This digital ledger (also known as a distributed ledger) is consensually shared across a network and considered both secure and indisputable. 

Although “currency” is the most commonly recognized application built on a blockchain, some pundits believe it’s just the beginning. 

Harken back to when you first used email. This was once the only viable application used by the general public based on the internet. Fast-forward to today, and the internet has disrupted virtually every industry. 

Is a similar trajectory underway for blockchain technologies and crypto assets? After all, blockchain technology may offer benefits of immutability, transparency, efficiency, security, and low-transaction costs. As such, it has the potential to reshape the insurance industry, real estate, finance, supply chain management, healthcare, and even government’s roles and responsibilities. 

No doubt about it, concepts like blockchain and crypto can be mind-bending. But the larger question everyone is asking is, “Does crypto belong in my portfolio?” 

The answer, of course, depends on myriad factors, including your risk tolerance and whether you believe in its long-term potential. There’s no getting around the fact that digital assets have been spectacularly volatile. It’s also hard to argue that it remains a somewhat speculative bet—even if you are a fervent believer. Perhaps it’s best if investors and advisors discuss the pros and cons within the context of longer-term investment goals. And if it is deemed appropriate, only then should the discussion turn to one of tactics. 

And remember, a small dollop of crypto is probably enough for starters. 

Disclosure: Investing involves risk, including loss of principal. Carefully consider the investment objectives, risk factors and charges and expenses before investing. Information presented is intended to be educational and should not be construed as investment advice. 

The information contained herein is for general and educational information purposes only and is not intended to constitute legal, tax, accounting, securities, research or investment advice regarding the strategies or any security in particular, nor an opinion regarding the appropriateness of any investment. This information should not be construed as a recommendation to purchase or sell a security, derivative or futures contract. You should not act or rely on the information contained herein without obtaining specific legal, tax, accounting and investment advice from an investment professional.
There are risks involved with investing, including loss of principal. The value of an investment and any income from it can go down as well as up. Investors may get back less than the original amount invested. Returns may increase or decrease as a result of currency fluctuations. Past performance is not a reliable indicator of future results. Investment may not be suitable for everyone. Diversification may not protect against market risk. Digital assets are highly volatile, unregulated, susceptible to error and hacking and can be affected by discontinuation. Please ensure you are aware of the risks before investing.
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