Save $588 per year with Sponsored Premium
The trading and investing signals are provided for education purposes and if you use them with real money, you do so at your own risk.
In their 2016 white paper “Bitcoin: Ringing The Bell For A New Asset Class” ARK Invest’s Chris Burniske and Coinbase’s Adam White explored the idea of Bitcoin being the first of an entirely new ‘cryptocurrency’ asset class. Brave New Coin's Rafael Delfin has extended these theories "to create a hierarchical classification system and naming conventions for what is not only a new asset class but a new superclass—Cryptographic Assets—created by distributed ledger technology." In their white paper, Burniske and White note that bitcoin can, in principle, function across all three of Greer’s asset superclasses at the same time. This fundamental economic property is Brave New Coin's General Taxonomy’s first basis for a definition of Cryptographic Assets as the fourth superclass under Greer’s classification. The second component definition for this new asset superclass, according to Delfin, is its digital, distributed, permissionless, and cryptographical nature.
Amending the previous lesson's table by the fourth superclass, Delfin draws the following table:
Identifying cryptographic assets as the fourth superclass among global assets results in a different calculation of portfolio exposure within an asset allocation if an asset manager's goal was to have equal exposure across the three superclasses. When simply counting crypto assets as pertaining to a single superclass, they would compete with other assets within that superclass.
In its own class, the overall investment to crypto is larger when the goal is to be diversified. A far-reaching adoption of this definition would therefore increase the likelihood of rising crypto asset demand and subsequently also crypto asset prices.
If you buy into this addition of a fourth superclass of assets, then as an asset manager, you can show your asset allocation to your clients according to the table above and help crypto-enthusiastic clients better understand their overall portfolio allocation and exposure.
Tradimo helps people to actively take control of their financial future by teaching them how to trade, invest and manage their personal finance.
Tradimo operates only under the following URLs: tradimo.com, learn.tradimo.com, de.tradimo.com, go.tradimo.com, news.tradimo.com. All other URLs containing 'tradimo' do not belong to Tradimo and might be fraudulent websites.
Risk warning: Trading in financial instruments carries a high level of risk to your capital with the possibility of losing more than your initial investment. Trading in financial instruments may not be suitable for all investors, and is only intended for people over 18. Please ensure that you are fully aware of the risks involved and, if necessary, seek independent financial advice. The educational content on Tradimo is presented for educational purposes only and does not constitute financial advice.
© 2024 Tradimo Interactive ApS. All rights reserved.