When encountering resistance from clients regarding blockchain’s investment potential, advisors could effectively liken blockchain to the internet in its early stages—a relatable analogy for baby boomers. Though basic blockchain technology is free, so was the embryonic internet when Google and Amazon started up with what were essentially just applications.
Moreover, risk management for blockchain is now a rapidly developing area, in which expertise is being touted by digital asset managers such as Darma, a firm that’s bullish on the concept of Web. 3.0, which would embody the DeFi and hence, financial decentralization of the current web.
Specifically, what will happen in this digital gold rush is anybody’s guess. About the only thing that’s certain is that picking likely winners from the multitude of entities—and the firms investing in them on behalf of clients—is a daunting challenge reminiscent of the chaotic early years of the internet. Advisors getting into this realm would do well to keep in mind that responsible advice to clients requires no small amount of effort to catch up and stay current.
Eric. C. Jansen, ChFC, founder, president and chief investment officer of Finivi Inc., an SEC-registered investment advisory firm based in Westborough, Mass., is the author of numerous articles on blockchain. He is the founder of blocksocial.com, a blockchain technology media site.