Capital Club 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 Segment
- Welcoming Keith to the show
- Keith shares his background
- Growing up the trading area
- Educating the world about alternative investments
[02:18 – 16:33] Breaking Down Cryptocurrency and Digital Assets
- What is an alternative asset?
- Keith on alternative investments becoming more mainstream
- Cryptocurrency and digital assets
- Decentralization
- Distributed ledgers
- The key innovation of Bitcoin
- Bitcoin vs. other tokens
- Why a vast majority of digital tokens are worthless
- Why you have to look at the value and functionality of a digital asset
[16:34 – 28:02] Cryptocurrency’s Volatility
- Cryptocurrency as a medium of exchange
- Volatility in the crypto market
- Stable coins
- An exchange vs. a wallet
- The value of cryptocurrency and digital assets
- Comparing it to the stock market
- Why are cryptocurrencies so volatile?
- The role of social media
- Bitcoin’s limited supply
[28:03 – 48:15] What You Should Know Before Investing in Crypto
- What investors should know before getting into crypto
- Understanding the risks
- Mathematical drivers of how risky your portfolio is going to be
- How you can access these tokens
- Liquidity in cryptocurrency
- Cryptocurrency and inflation
- On regulations
[48:16 – 51:58] Closing Segment
- Keith on the gold standard
- How you can connect with Keith
- Final thoughts
Tweetable 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
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Connect with Keith:
https://www.linkedin.com/in/keith-black-phd-cfa-caia-fdp-8b16344/
Connect with me:
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