Bitcoin Global News (BGN)
April 30, 2018 -- ADVFN Crypto NewsWire -- It’s not easy to succeed
with any sort of blockchain-related investing due to the volatility
of the industry at this time. Chris Burniske and Jack Tatar’s work,
“Cryptoassets,” provides
worthwhile guidance on the subject while relating said guidance to
traditional investing advice.
All of this guidance exists in the
book’s section called, “Preparing Current Portfolios for
Blockchain Disruption.” With a brief
explanation of the central point that this section aims to put
forward, it is hoped that the average investor can begin to feel
more at ease with managing the volatility in his or her
crypto-portfolio.
Burniske and Tatar begin by
suggesting that the first thing to keep in mind when beginning to
invest in crypto projects or what they call “crypto assets,” is
that the entire concept of the blockchain can and should disrupt
just about every industry.
Following this, the authors get
into real-world examples of blockchain disruption to illustrate how
a certain kind of analysis can help the average investor. The first
mentioned example or use-case relates to the remittance
market.
Burniske and Tatar ask you to take
the example of blockchain firms moving directly into remittances,
which Stellar and others are actually doing, and then ask yourself:
how is this going to effective the existing market dominance? Of
course, a myriad of other questions exist that can be applied in
this way but this is the suggested starting point.
In zoning in on the answer to
questions like this, Burniske and Tatar recommend using the
theoretical lens of exponential disruption. In short, all this
means is considering every possible issue and change that could
come about related to the blockchain, with the existing ideas
related to disruption and disruptive
technologiesas your foundation for how you would act on
this change.
One author that both recommend
becoming quite familiar with is Harvard’s own, Clayton
Christensen. He’s known, globally for his works related
to theory on how businesses should act on and capitalize on
disruption and disruptive
technologies.
You might be asking at this point:
what exactly do we mean here by disruption and disruptive
technologies?
It’s actually quite simple.
Disruption in business and in technology means something like a
product that comes in and makes all of the most powerful products
in the space, obsolete. Disruption is the specific type of
innovation that applies to the blockchain, even now.
Burniske and Tatar suggest that
investors need to account for this as well as the possibility that
incumbent companies will fight back by “reinventing” themselves as
“blockchain” companies so that they retain their market dominance.
When they have both in mind, then the entire portfolio and its long
term plan should be built around these ideas.
With these possibilities
under consideration, one can move on to traditional
financial analysis with metrics like market cap,
price-to-earnings-ratio, and many more. With disruption as your
theoretical lens, the volatility should feel less like it’s always
looming overhead.
By: BGN Editorial Staff