Bitcoin Forum

Hi Everyone,

I wrote up an article that discusses how cryptocurrency is going to change the personal finance market.

There is a big shift coming from institutional management to personal asset management. What do you guys think about this transition? Is it a good or bad thing?

https://medium.com/@ShrimpyApp/cryptocurrency-will-explode-the-personal-finance-market-61e5669d6221

Looking forward to hearing what you guys think!

Good article, couple observations - You're right that there aren't many asset managing firms that work with cyrpto's but I would add that it's slowly changing for the better. Larger financial firms like Goldman Sachs have started entertaining crypto's and I know for a fact that smaller institutions have opened the road to managing and allocating Bitcoin to client accounts.

Last note on the amount of investors. I'd be willing wager that the amount of investors are probably inflated. The amount of people that truly have a significant portion of their investment funds within Bitcoin, or any other crypto for that matter, are probably minimal. Most people have their money tied up in other precious metals and it's likely that people hopped on the bandwagon after the boom in Bitcoin these last few years putting away an extremely minute portion of their funds in BTC and letting it sit.

Again, good article!

I appreciate all the great points! Yes, the move by institutions towards accepting crypto has been slow, but it is happening. Over the course of the next few years, I expect we will continue to see acceptance by these institutions as they develop their own crypto solutions and feel comfortable with the progress of the space.

I agree about the numbers. At this stage it's still difficult to accurately gauge the number of participants in the market, so I hope there will be more studies that look at these numbers.

Bitcoin is empowerment or putting the many choices and that power to decide right in the fingertips of each individual, no wonder there remains to be a big boom in the personal asset management side. This niche is growing and will continue to be expanding as the whole industry of cryptocurrency is conquering new markets. Now, because investments carry assumed risks, people have to be educated on many aspects of personal asset management and this is where third-party platforms can be coming in, ensuring that all players are receiving the basic information and of course informed of the many options they can use along the way. Education is the key here and I am assuming that service providers are doing all they can to partake knowledge to their customer base.

Yep it will get easier for a person to manage his own finance. However, there will be pros and cons if you decide to manage it all by yourself. I think the market for pooled fund and personal fund will always exist, no matter what "assets" included into the equation.

If you decide to use asset management service, your fund will be managed by professionals so they can maximize return (in theory). Some people would want more convenience while the others would want more control. Hence, IMO, no need to merge them into one basket.

The fact that cryptos are so easy to get into with its low barriers to entry as well as the fact that there is little regulations around it make it almost perfect as a personal investment asset. No longer are you bound by the barriers imposed on you by investment banks or private equity firms.

That in itself means that there is a larger audience of personal investors who can stand to benefit from diversifying their portfolio into BTC.

Of course, there are negatives that come with an unregulated market - but that is largely outweighed by the rewards for the average investor.

Fidelity has recently won a licence from the New York State authorities to offer cryptocurrency services to institutional investors.

I wouldn't be surprised if in five years time cryptocurrency was entirely dominated by big money institutions. The current era will be seen as quaint, much like the 1990's internet which was dominated by small players, unlike how it is now.

This is obvious when traders are losing too much while many people still win when sharing the indicators. I have also failed many times in this trade and I realize that capital management is very important. If we trade like gambling, we will lose just like gamblers. So this crypto market is bringing self-awareness to people in many countries and making them compelled to learn how to manage their finances.

Great article. Had a few great whoa's when I read it. But I doubt you could call a problem that could be solved with time a problem at all? Like, A situation without a solution yet, that can be called a problem. But a situation which can be solved in just a matter of time? I don't think so. And another point, most investors are actually just there because they believed BTC was a quick buck, with the ATH in 2017. That was why a lot of investors suddenly entered the market, but then it dropped and dropped and reach $3-$4k and well, I'd suppose those looking for a quickly were quickly disappointed. Still, there's still plenty of time imo, but preparing for it early isn't really that bad as well.

The acceptance of cryptocurrencies like BTC on FOREX market was actually smoother than the institutions from other stock market. Some even consider crypto to belong to penny stocks which of course they over look blockchain technology. The technology behind crypto is what they now considering and because big companies are now developing their block blockchain and this will let them shift to being personal asset management.

What happens with cryptos is that it has created a market where each individual can have access to a certain type of (investment without being too much bothered with laws, taxes, and so on. You can start investing by betting 1 cent. There are not a lot of solutions to manage a portfolio of cryptos but at least there are some. I believe in 5 years it will be used a lot more and more solutions will come.

But anyway I don't know if you've noticed it but the finance itself is changing, and the way how people use their finance too

Personal asset management jobs are inevitable. It's already happening and going to be more popular in some years. A clear sign of that are the retirement saving plans dealing with crypto currency. People who have access to these plans can have the assistance of managers who will help them to invest their money in crypto currency, and that is just a small example I have seen.
On the other hand I fear even the most skilled manager isn't able to predict the market fluctuations, what can disappoint many investors and ruin these managers professional reputations.

That will be the most difficult part of all.
It ain't easy to count participants specially when the privacy is intact. Bitcoin.
Even if you count the address which had been made it wont still make any sense since I can create wallet address for so many times.

Your article have some good points. I never though it would come this deep. That is why I love reading here in this economic discussions.
I am more of managing my own funds. But still it would be lovely having some part with institutional markets but how. That is what divides one human being with them.
They are just difficult to reach and one effect of this is people are going to save money or invest on their own way (cryptocurrency) rather than with institutional investments.

Good opportunity when invest with bitcoin and crypto market during price always up, but when price goes down how come you can said better save or invest assets in bitcoin and altcoin. Many people have experience with lost assets in bitcoin because price have down and they not brave for investing anymore with bitcoin and altcoin, we have change investor mind and keep promote bitcoin without give profit first by investing on crypto.

Of course it is generally good because that means the control is transferred fully in yourself. It is much better compared to the times when your personal asset is being managed by other people who sometimes are not to be fully trusted. There have been countless of issues with personal managers having failed their bosses.

But this is also a double-edged sword because there are also other people who are really too poor or too busy in personally managing their assets. They better hire reliable and trustworthy managers in such cases.

Cryptocurrency is just a new thing to majority of the people. This gets importance when more and more people starts to benefit out of the same. Important thing is the awareness, this is slowly getting wider acceptance. This makes people believe over it, and switch to cryptocurrencies. When we talk about the personal asset management it has been made simple with the development of more and more applications makes the process easier.

Whether it is cryptocurrency or some other potential investment, if there is proper management automatically the growth will be experienced.

On the positive side, having this shift in financial methodologies is good since we could lessen the need of paper and natural resources, which would bring ecological impact especially on the forests. However, proof-of-work is quite energy inefficient and thus the need for alternate validation techniques is necessary to lower the energy consumption to power up these cryptocurrencies.

that's a good change in my opinion, so far many have assets in the form of crypto currencies, such as Bitcoin, ethereum, tron, and they enter into portfolio, that's a good thing,
not only gold and real estate, but if you don't have a good strategy your investment will be useless, because Bitcoin and other altcoins will not necessarily go up.

It's a good start. The ease of getting into it meant that even the unbanked in developing countries can start saving up. People who can't afford to buy gold or don't have enough money for stocks can just buy crypto, etc.

It's also easier to manage your money. The only time I use banks in relation to crypto is when cashing out and it need not necessarily be done with just banks.

With bitcoin, the people had an opportunity to purchase bitcoin at their own freedom without thinking of having gold as their asset. Managing our money is worthy in most cases, but what's more important is that you knew how to control your outgoing and incoming funds. Developing countries should apply crypto on banking system in order to make their transactions more efficient.

Actually i don't think this would happen until there is some stability in the market. Cryptocurrencies market are pretty volatile and can fall upto 20% in a day no fund manager would go on to invest in such things as people would really kill them for this. Moreover most of the funds are made under the guidelines of SEC which tell how much weightage can each sector carry. So until there is a change in such guidelines fund manager really won't be coming in Cryptocurrencies.

The personal assets mentioned in the article seem to be the Tokens/ Coins that get listed on exchanges post ICOs or other forms of fund-raising. I don't think that trading of these assets actually comprises "Asset Manangement" yet.
In the traditional sense, when you have a portfolio of stocks being managed by an asset manager, they are investing your money into companies that are part of different economic sectors. Depending on the market and business conditions, they make decisions to manage the portfolio in such a way that you end up with a decent return.

On the other hand, calling the trading of Alts vs BTC or Alts vs USDT as "Asset management" is presumptive. This would not be the case if these Alts actually had a live user base and were being actively used for economic activity. Even the most prominent of the Alt-coins like Ethereum, EOS etc have not yet been able to come any closer to launchiung a proper DAPP econsystem. The app that is advertised at the end of the article basically provides access to data on the rates of Alts and BTC in major exchanges. Such API's have existed for a long time and trading bots have been utilizing them for quite sometime. How so you call this "Asset management"?

It is a good start indeed but would it be another risk to take by individuals? We used institutional asset management because they were the ones who specializes on keeping our assets safe and secured, turning it to personal management could led into something we do not want. Cryptocurrency becomes an speculative and digital investment accessible almost for everyone but don't set aside the gold which can be use to unit an account for value storing also, tangible and less volatile. This is why government and banks are still on process handling this thing as the number of crypto users are growing.

Personally I would totally love it if I were able to manage it but have you ever think of your safety while having those assets? you could be in danger situation and so this is why we have banks to store.
 I do use banks for cashing in and out. Also I use banks for savings with interest rate, it is good and passive.

It's still better to have a variety of assets but I think one thing that should be explained about bitcoin is there isn't a high starting minimum balance. People who can't afford to open up a savings account can open an account on a bitcoin exchange first for example and then learn how to transfer that to other storage.


Only keep crypto you can afford to lose. Preferably you'd have most of your "savings" in other forms instead of justcash in banks. You are just losing money keeping your money in there. For example the highest interest I've seen in my country that don't lock the money in for 5+ years is 0.25%/annum with a minimum daily balance of $983- the inflation rate is around 3%.

Thats too small if we compare with another saving or Investment.  With that inflation our money value actually decrease alot if we used to buy goods. Investment with null risk and high return was property or land.. It will need more money but its return high enough if compared with bank saving.. Meanwhile in crypto it has high return it also container high risk too. And be wise with our money for crypto investing will help us from bankrupt condition.

Crypto can change the personal asset management market if price always up but when price down your crypto assets have lower price. I think have risk and profit by investing with bitcoin and altcoin, not always time bitcoin have higher price because many time bitcoin always down by giving fake news with bad situation of bitcoin, many people always try giving fake news to make investor sell bitcoin and altcoin with lower price.

Do not make banks the safest place on Earth for our assets because its not. Banks do get robbed by criminals and let us just not forget about they cyber ones too. Hackers hacked banks and got huge amounts many a times in the past. Future wont be any different. if we invest in bitcoin, then not only we will save our asset from all kind of robbers but also do beneficial investment simultaneously.

Transition is a good thing really and its something to be absorbed really. Over the years, the way of investment has been limited to the few who have the education and connect or those who have the funds that the institutions are looking for thereby locking out those not in those circle from such opportunities. But not again with the advent of crypto as we can see happening all around age, location and fund is no longer a deciding factor. An eighteen year old kid that understand how crypto market works could make a fortune equally to thirty five years of active service and at the same time never needed the expertise of the institutional investors. Times are changing and its best to change with it.

The banks or crypto needs more attention to avoid hackers. The difference we don't have to protect our account fully because that will be the job by the banks. But in the crypto, the responsibility will be in our hands so no matter what, we need to protect our account aka our wallet from the hackers, especially in the exchanges. The exchange itself is like banks in real life which can be hacked too by the hackers. So if you cannot protect your wallet, then that will be dangerous for your asset.

Definitely! You are even better off risking lending that money to friends and colleagues at 5% interest. What's surprising is the number of people that are surprised to find out that money in bank pretty much don't earn anything.

Banks have their uses but they are NOT for growing wealth. Keep your money in them while saving up for an investment and maybe keep a minimum to retain access to stuff like ATM and credit cards.

Wealth-making should never be a consideration when making a savings account in the banks. They are just savings but not income generator. Even time deposits and bonds offered in the banks are giving very little interest that it is always better not to go for them. It is better to buy properties that appreciate rather than save money itself which is depreciating. Putting money in the banks for regular necessary expenses are good though because that gives security. 

I think this is a great opportunity to raise people's minds about financial knowledge and help more people lead a prosperous life than ever before. A typical example is that my country is often superstitious and they do business based on the good fortune of God. But now that I am different, I have seen many young people begin to learn more, they cultivate more financial knowledge and do not rely on God anymore. This has made my country's economy grow significantly and I feel very happy. Crypto market has really changed a big face of some Southeast Asian countries.

Your response is a little confusing. If a person is poor, he will not care about asset management. It is because he does not have any asset to manage in the first place. If all that a man has is his very basic needs, he does not have to learn about asset management. He needs to learn about how to create income. He needs to undergo income-generating skills training. He needs to create asset by developing skills and acquiring knowledge and be able to use them to create money. Only then will he be able to ponder on asset management.

Let just respect what our friend was trying to say mate, and I guess what he's talking about was only based on his observations towards a particular person. The existence of God couldn't be compared to money or whatsoever, spiritual and physical ability won't compete. If most of the young people learned and cultivate themselves on crypto, well good for them and learning how to make money was a wisdom coming from our creator.

In case of banks, it is not that we don't have to protect our own accounts rather we cannot. Only bank can protect all of its accounts. For this purpose, these have whole department dedicated to information security only. crypto currencies are not owned by any one and holders have their own personal accounts. Exchanges also need to make sure that credentials don't get compromise. But keys are owners responsibility solely.

Pretty much my view of them. They're just for convenience. Have a few month's emergency savings in the account, plus your monthly expected expense. Otherwise your wealth should be in some other form.

You can get rich financially only by doing business, investing in startups or stocks, which can greatly increase in price. Bank deposits will not bring profits, because those profits will be eaten up by inflation. Once again, you can get rich only by either doing own business, or investing competently in other people's businesses. 

This asset management transition seems to be cutting some parts of the system apart, but the level of need will still be different, especially something that is still binding like companies and employees, they still have to be responsible for taxes. it's impossible they use crypto. But there are good things for the creative industry, they are more sensitive to this, I think there will not be too much debate because it has not been active on a national scale.

1. Depending on the project you are following
2. Totally different Betweet 1 and the other so it can be varies.
3. Join as much as you can if you want to get more:D
4. Depend on project but in this situation market if your token landing first better to sell it, because it will take a little long time to back.

Either way we are not totally safe. System upgrades, and so the hackers do.  But in banks the money is always insured (or it depends in the bank) lost it then compensate it. This is what I want with banking they are absolutely taking care of your money and accountable in any circumstance. Unlike with personal management all the work to avoid any problem will come from you. That is why even we have crypto for digital and speculative investment now, I still use banks for its very purpose, to protect. Also the reputation of the bank is on top priority when choosing who's gonna take care of yours.

These banks, these exchanges has ethical hackers or people that deliberately hacks their computer and website to find any hole that can be a potential problem. Once they found out any hole that can lead to data breaching or fraudelent acts, they will upgrade their system until their ethical hackers have nothing to see anymore.

It is definitely a good thing. because this financial market should be expanded and it will help people become more active in studying and managing finance well to have a beautiful future.
I really understand the meaning of this because my friends are students who don't know how to manage their finances and they often run short of money before the month is up. I am actually quite concerned about this because our future will be determined by our intelligence in financial management and investment.

The best approach, in my opinion, is personal assets managed decentrally and algorithmically. In this way, you are sure rules will be faithfully followed/obeyed by codes,  can't be changed without your permission and can only be changed through community/collective agreement. Third-party services have to be fairly decentralized to be taken seriously by those who know what they really want in Crypto world.

why concern when you already said that crypto brings positive effect on the financial/asset market  . its nice to know that people are now becoming attracted on the finance market just after crypto became popular  .

now people learn to save and manage thier funds more wisely than compare to before  .  not just the finance industry that crypto changed but other industries were already influenced by crypto before  .