Chairman of Bitstamp (a crypto exchange), Dan Morehead spoke at the Sohn Investment Conference this week.
His aim? Trying to convince portfolio managers and asset allocators that bitcoin needs to be on their radar.
Morehead told attendees,
‘The upside is so high, it’s a rational, expected thing to have in your portfolio’.
And it seems to be more than just bullish sentiment, Morehead believes bitcoin will revolutionise money. We don’t want to brag, but some of our editors have been saying the same thing for quite some time now.
Which is why we agree with Morehead’s message. We believe crypto is a great asset to any portfolio. As long as you understand that there are still significant risks.
Morehead also discussed the blockchain. He likened it to internet protocols, a system of rules that govern the internet.
Morehead said these protocols effectively run the internet. But, the profits are going to third parties who build applications on top of these protocols, like Google.
He sees blockchain (the technology behind bitcoin) as fundamentally changing this hierarchy. Under blockchain, the protocols or foundation, like bitcoin, would take most of the profit. Meanwhile third parties who utilise the protocols, such as exchanges would only get a fraction.
In other words, it’s a total shake-up. A complete reallocation of wealth.
Wall Street Got the Message
It seems Wall Street is finally getting the message as well.
Mark Cuban has confirmed he has invested in bitcoin. After months of hinting at an investment, he finally told Bloomberg that he has in fact taken the plunge.
In what has been a complete about-face, Mark Cuban is now a bitcoin believer. He even called out JP Morgan CEO Jamie Dimon over his recent criticisms.
‘It is interesting because there are a lot of assets which their value is just based on supply and demand. Most stocks, there is no intrinsic value because you have no true ownership rights and no voting rights. You just have the ability to buy and sell those stocks. Bitcoin is the same thing. Its value is based on supply and demand. I have bought some through an ETN based on a Swedish exchange.’
The time to get in on the bitcoin bandwagon is now. Wall Street is coming, and once they do the rest of the rabble will follow. Don’t get left behind, find out how to get a hold of some bitcoin today with our free report.
Junior Analyst, Money Morning