Cryptocurrency and Digital Assets: The Big Picture with Keith Black

Keith Black has over thirty years of financial market experience, serving approximately half of that time as an academic and half as a trader and consultant to institutional investors. He currently serves as Managing Director of Content Strategy for the CAIA Association. He has contributed to the CFA Digest and has published in The Journal of Wealth Management, The Journal of Trading, The Journal of Investing, and The Journal of Alternative Investments, among others. He is the author of the book “Managing a Hedge Fund,” as well as co-author of the second, third, and fourth editions of the CAIA Level I and Level II curriculum. Dr. Black was named to the Institutional Investor magazine’s list of “Rising Stars of Hedge Funds” in 2010.In this episode, Keith talks about cryptocurrency and digital assets. He breaks down what cryptocurrency is and what value Bitcoin and other tokens like Ethereum brings to the table. Keith also shares his thoughts on cryptocurrency’s volatility and what investors should know before getting into the digital asset space. Join us and listen in![00:01 – 02:17] Opening SegmentWelcoming Keith to the showKeith shares his backgroundGrowing up the trading areaEducating the world about alternative investments[02:18 – 16:33] Breaking Down Cryptocurrency and Digital AssetsWhat is an alternative asset?Keith on alternative investments becoming more mainstreamCryptocurrency and digital assetsDecentralizationDistributed ledgersThe key innovation of BitcoinBitcoin vs. other tokensWhy a vast majority of digital tokens are worthlessWhy you have to look at the value and functionality of a digital asset[16:34 – 28:02] Cryptocurrency’s VolatilityCryptocurrency as a medium of exchangeVolatility in the crypto marketStable coinsAn exchange vs. a walletThe value of cryptocurrency and digital assetsComparing it to the stock marketWhy are cryptocurrencies so volatile?The role of social mediaBitcoin’s limited supply[28:03 – 48:15] What You Should Know Before Investing in CryptoWhat investors should know before getting into cryptoUnderstanding the risksMathematical drivers of how risky your portfolio is going to beHow you can access these tokensLiquidity in cryptocurrencyCryptocurrency and inflationOn regulations[48:16 – 51:58] Closing SegmentKeith on the gold standardHow you can connect with KeithFinal thoughtsTweetable Quotes“Just like you have a stock market with different industries, with the large-cap stocks and the small-cap stocks, the digital asset world is the same thing. So you have to look at ‘What is the value or the utility of this good or service?’” - Keith Black“In this decentralized world, the code is the law and your assets are the assets. If you can show a specific balance in your Bitcoin or  Ethereum, you do have access to cash, even when a centralized counterparty like a traditional bank might not give you liquidity there.” - Keith Black------------------------------------------------------------------------------------------Connect with Keith: https://www.linkedin.com/in/keith-black-phd-cfa-caia-fdp-8b16344/Connect with me:LinkedInLIKE, SUBSCRIBE, AND LEAVE US  A REVIEW on Apple Podcasts, Spotify, Google Podcasts, or whatever platform you listen on. Thank you for tuning in and Stay Tuned for the Next Episode COMING SOON! Hosted on Acast. See acast.com/privacy for more information.