Christopher Jensen from Franklin Templeton tackles myths about crypto in today’s Crypto for Advisors newsletter.
Cryptocurrencies have been around for over a decade now but remain largely misunderstood by the investment community. In this article we dispel a few of the biggest myths surrounding crypto to help you assess the opportunities and risks for clients.Many investors like to lump cryptocurrencies in with tulips and Beanie Babies, believing that they have little to no intrinsic value.
Evaluating protocols is not so dissimilar from evaluating companies to invest in via stocks or bonds. Major considerations include the protocol’s purpose, customers and value created, as well as the competitive landscape. What is different from traditional investments is that there is not always a mechanism for the value of a protocol to flow through to the token.
, the illicit share of all cryptocurrency transaction volume in 2022 was 0.24%, down from its peak of 1.90% in 2019. The 0.24% of the crypto market translates to $20.8 billion of illicit activity, which is a very small fraction of theMyth #3: Cryptocurrencies are bad for the environment