DuuuncanHadaPigeon
Player Valuation: £10m
Things you don't understand aren't automatically scams
Crypto currency (IF banned from CA)
- Thread starter YoboCopter
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I work in finance so I have a rudimentary understanding.
More people will get blagged than will make a wedge.
DuuuncanHadaPigeon
Player Valuation: £10m
This doesn't just apply to crypto though, I see etoro adds everywhere which is just as bad...
With that being said, I generally agree, it is a minefield. I nearly agree with your earlier statement, I would say 98% of crypto is vaporware/scammy crap.
I don’t know a single advisor that recommends crypto. And they’re self interested to the point if you do well, they do well.
collymcd
Player Valuation: £15m
What advisors are you talking about? I met an 'advisor' in a bank here about four years ago. She told me cryptocurrency wouldn't exist in five years. Then wanted to sell me the bank's products. She was essentially a sales person with a nice title.
treer
Player Valuation: £500k
that will all change soon, many banks are building up crypto departments, especially in the US.
Remind me not to get advice, from your advisor associates
Independent financial advisors with years of experience. Bank advisors are tied to their bank so will only recommend products they’re allowed to recommend.
By all means crack on, advisors aren’t investment experts by any measure. None of the ones I know personally (they’re all loaded) have put anything in crypto. Doesn’t mean there isn’t money to be made?
I mean my job role would be Paraplanner so I’m not anyone to listen to. Advisors will invest in very dodgy stuff - things you’d never advise a client to do - yet none have gone into crypto? Again, they might just be slow on the uptake?
DuuuncanHadaPigeon
Player Valuation: £10m
I mean if you are going to an advisor to invest in crypto you have missed the point anyway.
The whole point of crypto is to remove middlemen.
While crypto is highly volatile, it can also generate returns that are impossible in traditional markets.
The whole point of crypto is to remove middlemen.
While crypto is highly volatile, it can also generate returns that are impossible in traditional markets.
collymcd
Player Valuation: £15m
My guess is that this is right. The cryptocurrency overall market capitalization has been the biggest growth market in the world over the previous number of years. (With the exception of the carbon & ESG market recently.) Its a huge missed opportunity not to get involved in it.
Then again, many advisors might be uncomfortable with the lack of regulation in the crypto market. It's a relatively immature market, but that also makes it a good place for opportunity.
If you read about decentralised finance you can find some really interesting innovations and products. There are some amazing protocols that allow things that were unthinkable before.
Thankfully, regulation is starting to come in allowing these defi products to be offered to traditional markets soon. The Openwealth Association is a good example of this. One of their members, Credit Suisse, very recently confirmed publicly that they'll be accessing defi products via the Openwealth API. (They will essentially access and offer AllianceBlock's products by the look of it).
ForeverBlue92
Player Valuation: £80m
All this Crypto talk is fascinating but you cant slip it down a strippers G String like you can with a good old tenner can you.
nikom court
Player Valuation: £20m
Bitcoin puts financial advisors on the dole,it's turkeys voting for Xmas!
Gabagool
Player Valuation: £950k
The legacy banking generation has little to no incentive to take the time to understand anything which may eventually threaten the system's prevailing orthodoxy because their bellies are full and their pockets are filled in one of the cushiest roles around (until the day the music stops).
I've worked with chartered IFAs, and despite their multitude of qualifications, they by and large fail to show any critical thinking or understanding of wider macroeconomic shifts, or anything which the CII haven't given them strict guidelines to religiously revise and follow from their textbooks. The cream of the crop of that generation didn't go into financial planning, they went into investment banking and big-four consultancy (pre-2008 anyway; since then the brightest minds have gone to tech companies, with a more recent shift towards various DAOs and DeFi protocols).
In 27 out of the last 30 years, an average weighted portfolio has garnered positive returns, and this 'up only' mentality has warped the simplistic prism through which those in the industry view wealth management. Originally ignorant to how much fintech would carve out of their space (the curtain has since been pulled back to reveal an outdated, paint-by-numbers approach towards investment), they're now blind to the paradigm shift in how younger generations perceive and use money in the face of impending housing and cost-of-living crises.
As others have alluded to above, FP firms investing in projects that ultimately remove the need for middlemen within the world of retail banking and investment would only serve to diminish their relevance over the medium-long term. However, standard game theory will probably play out and despite the volatility, funds will start to invest smaller percentages of portfolios as a hedge against the potential upside still to come, especially if the FAANG bubble continues to deflate (and those shoo-in pension fund returns come into question).
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