Should you invest in crypto assets? BRINK Conversations and information on world trade

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Economy August 10, 2021 Interview with

Elizabeth paine

Senior Investment Consultant at Mercer

Matthew Scott

Senior Investment Research Specialist at Mercer

People walk past a CryptoPunk non-fungible digital art (NFT) token displayed on an electronic billboard in a bus shelter in Midtown Manhattan on May 11, 2021, in New York City.

Photo: Dia Dipasupil / Getty Images

In this episode, Rupert Watson, Head of Asset Allocation at Mercer, is joined by his colleagues Elizabeth Paine and Matt Scott, senior investment experts at Mercer, to discuss developments in the world of crypto assets and the broader digital ecosystem they underpin, including decentralized finance. .

While it is tempting to dismiss most or all of the thousands of crypto assets and their use cases as part of a very old story, the investment in the Get Rich Crypto Program is underway. growth.

The rise of crypto:

Scott: “Cryptocurrencies really started with bitcoin in 2009 and it was really a reaction to the global financial crisis. The purpose of cryptography was really to remove a central source of money, such as the central bank, and to cut out middlemen … and democratize money.

“The total supply of these new digital coins would be limited, and indeed the total supply of bitcoin is still limited today.

“We now have around 6,000 digital currencies. A lot of them are sort of absurd, some of them ingenious, and often now they tend to have very different goals than the original bitcoin project.

The problem with cryptocurrency:

Paine: We’re getting closer to that 19 million of the finite 21 million bitcoins that need to be created. … As for bitcoin being a store of value, I think it’s probably more of a speculation, and it’s probably something that will probably be more desirable as we get closer to that 21 million. I don’t think it’s something that stores value as such, but… it’s a little new thing to have.

Scott: Now most people instead of discussing the future of money, they’re just talking about the price. … When that happens in the markets, it’s always dangerous, and I think it’s probably a bubble cycle.

Paine: “[Potential investors must consider the] atypical risks, in particular regulatory risks, as well as a number of responsible investment issues around energy consumption.

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