2019 Will Be The Year That Crypto Decouples From Equity Markets


Everyone has a prediction for 2019. I am with Yogi Berra when he says that ‘making predictions is hard, especially about the future’. However, I will go ahead and make one.

Diversification is a cornerstone of a good investment strategy and it will be back in 2019 in a big way. More so, Bitcoin will mature as a truly diversified asset, while its volatility will subside. Bitcoin was born 10 years ago and it is widely considered to be spawned by the financial meltdown of 2008. Firstly, because it was released on Jan 3, 2009 just about at the price bottom of all risky assets. Secondly, the headline embedded in the Bitcoin genesis block, which referred to bank bailouts and strongly implied that Bitcoin was built to oppose that kind of financial system on opiods. Of course, Satoshi Nakamoto worked on Bitcoin long before the fall of 2008, probably since the beginning of 2007 according to the man (or men) himself (he said on the forum in late 2008 that he worked on it for a year and a half). But even in 2007 an astute observer of financial markets (and Satoshi was certainly that) could see the major breakdown in free market mechanisms, mostly due to the doctrine of Greenspan Put.



Request Your Demo of Portfolio Crash Testing Here or click  on the banner below.

Portfolio Crash Testing enables you to discuss portfolio risk and diversification with your clients using sophisticated risk models across asset classes.


Leave a Reply

Your email address will not be published. Required fields are marked *