Lex Sokolin is the Global Director of FinTech strategy at Autonomous Research. He helps financial services senior executives, board members, startup operators, hedge funds, and venture investors make strategic decisions about FinTech, Cryptocurrency, and Innovation.
In the 21st century, cryptocurrency is very controversial given its new technology which people know very little of but it is really here to stay, says Lex Sokolin.
In his expert opinion, he says the underlying technology is really fundamental for the types of companies people are building right now. For any person who is thinking about investing in Bitcoin, the understanding of what Bitcoin refers to is very important. He must understand how the blockchain works and also understand how payments work.
He further says an investor must know whether Bitcoin is fulfilling the promise of enabling digital payments. The price is very volatile in the market. Therefore, an investor must not go and fill his whole portfolio with cryptocurrencies but it is a good alternative to add to his general allocations. The total investment in cryptocurrency in the portfolio must be around three to five percent.
Lex Sokolin says:
“For advisors when you think about cryptocurrencies. Your clients are going to buy Bitcoin whether you like it or not. So you can choose to say that this whole thing will fall apart not get educated on it, not help people but that’s really irresponsible.”
The advisors should start understanding the basics of how the blockchain works, understand why there are differences between the cryptocurrencies. For example, what is the difference between a payments coin like Bitcoin and Ethereum which is a smart contracts platform? All these things are different.
The advisors have to spend the time to formulate simple answers to the clients’ questions which can better the understanding of the client before investing and give them a logical reason to invest so that they can help the clients make sense of this new technology.
The post Bitcoin [BTC] investment requires knowledge of blockchain and payments says Lex Sokolin appeared first on AMBCrypto.