.  Published  · By KarlVonBahnhof

How the legacy finance might be feeling about cryptocurrencies


Image: Taken from SGTreport

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Most of the people who have invested in cryptocurrencies in the past years were not professional investors. And a big chunk of those who went into altcoin trading might not have been rich before they hodl’d Ethereum since it was $9 – or something like that.

Back in the day when Ethereum didn’t exist yet there were running jokes in Bitcoin forums about one day getting as rich as to be able to bribe senators. Well, these days nobody jokes about things like that anymore. By now the people from two three years back are probably just getting closer to where the target audience of Mauldin Economics is: people who have earned some, yet aren’t the ones who move the ocean.

Below are excerpts taken from a today’s newsletter on Mauldin Economics. The letter does not even mention let alone endorse cryptocurrencies (although the autors have in the past), but it is an interesting insight into the minds of a lot people who on Reddit would be called normies.

Apparently, no matter how zerohedge “every day is a doomsday” it sounds, these people might be starting to worry about the Great Reset, the re-evaluation of the markets. The newsletter seems to be targeting people who have good income and reinvest the extra money so that it doesn’t lie around losing value. That means, a lot of people.

We need […] to restructure our portfolios to make sure we get as much of our wealth as we possibly can to the “other side” of the coming crisis […] We just have to get there with our assets intact.

If you read the full thing you’ll learn why the debt-economy could collapse and all the rest of it in detail.

Nevertheless, the newsletter is primarily a pitch and the main point consist mainly of the modern portfolio theory getting beaten. If there is a truly global crisis …

I believe that diversifying among asset classes will simply diversify your losses during the next global recession.

Hence …

I think the answer lies in diversifying among noncorrelated trading strategies that can invest in any asset class.

… And that’s about it, with one little detail - it’s focused on ETFs. Diverse ETF trading strategies.

You know how somebody will talk about getting a time-consuming task done and then the next person says, “There’s an app for that”? No matter what asset you want, there’s now an ETF for that. I am constantly amazed how narrowly focused ETFs can be. There is now an ETF that focuses its investments just on companies in the ETF industry. It’s not all large-cap-index ETFs anymore. Some really small, niche-market ETFs have attracted significant capital.

What I find interesting is how they particularly consider the niche ETFs. It almost sounds like they’d take any ETF, and perhaps the more outlandish the better.

Seems that in case there were a cryptocurrency ETF, there would be plenty of buyers.

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About the author

Written by KarlVonBahnhof

KarlVonBahnhof also on Reddit, Chris belongs to the crypto trader class of 2013. Located in the Americas most of the time, you're most likely to meet at r/BitcoinMarkets though.

Opinions are author's own.