Cryptocurrencies: Lessons And Perspectives

In an economic crisis, the traditional financial market takes, on average, about 18 months to overcome the bear market. The same logic does not apply to crypto, as it occupies a much smaller space and the pace of innovation is 20 times faster — one year in crypto is like 20 years in traditional finance.

In theory, crypto is a libertarian currency, which means that regulators should not interfere with its functioning. Phil counters this assumption: You shouldn’t trust billions of dollars to people whose background you do not know. As in every market, there are frauds in this space and predatory activities going on.

It is common for players to stop their investments because of uncertainties. It’s complex to understand the yield in crypto. There is a lot of speculation. Investors may have the impression that they have entered the classic liquidity trap. They need to generate yield on it, just like a bank would, by lending out assets to other counterparty institutions that have capital-intensive businesses that need liquidity.

As an example of his portfolio, Phil says he does not want 10% daily volatility. He owns 50% of crypto assets currently sitting in crypto that are pegged to the dollar value. In the other half, 25% of it is not a trend-following system. To get into crypto, Phil says we should understand that it should be only 5% or 10% of your investment portfolio.

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Corey Kupfer

Corey Kupfer

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Corey Kupfer is an expert strategist, negotiator and dealmaker with 30+ years of experience. He is also the creator and host of the DealQuest Podcast.