Crypto is changing the personal asset management market

[crabby]

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!

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[Gyfts]

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!

[crabby]

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.

[CryptoBry]

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?

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.

[mu_enrico]

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.

[sikke]

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.

[alyssa85]

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.

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.

[SvonioneFromMangoCoinz]

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!

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.

[panganib999]

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.

[bittraffic]

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.

[LeGaulois]

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

[uneng]

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.

[Dart18]

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.

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.

[Xxmodded]

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.

[NathanJB]

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.

[Ayiranorea]

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.

[blckhawk]

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.

[kapalmabur]

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!

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.

[Mometaskers]

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.

[AliMan]

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.