Using Blockchain crypto-currencies is no longer a renegade entrepreneur thing. Research has show that if you diversify your assets with Ethereum (or other crypto-currency), you could be covering yourself against a currency or a banking crash.
Will Blockchain currencies replace Gold as escape currency?
Since the collapses of Mt. Gox in 2014 following hacking and mis-management, the crypto-currency has a hard time getting taken seriously.
Most CFO’s are risk-averse, and leaving even 5% of their Current Asset to the Blockchain is a no-go, despite the incredible performance of the market during the last 2 years.
Hedging on uncorrelated currencies is traditional risk mitigation
Blockchain promises to give a bank account to anyone with a mobile phone, no ID required. It’s clearly an amazing and potentially world-changing technology – the first viable, decentralized, reliable form of digital cash. It could democratize international finance.
Ethereum could be crashing down due to bugs
he community behind Ethereum, another influential part of this movement, recently forked its project after hackers exploited a bug in its code. That was their best option. And now, bitcoin is facing much the same conundrum. It’s a flaw that could ultimately bring the digital currency crashing down.
But Arthur and Kathleen Breitman are working to eliminate this flaw. They’re building a new blockchain where the stakeholders can change the underlying technology through a kind of online voting system—a blockchain that can evolve according to the will of its community. “If we have a process for dealing with disagreement, for being constructive and moving on, we won’t have all the collateral damage we see with bitcoin,” says Arthur Brietman, 35, a French-born financial trader and technologist who spent several years with big-name banks like Morgan Stanley and Goldman Sachs. “The biggest risk to bitcoin is a split in the community. That would harm the network. This is the kind of thing we’re trying to avoid.”
The project may indeed provide a better way of building this kind of vastly distributed system—and possibly create a new kind of business. But it also raises questions about the fundamental nature of these projects and, indeed, the fundamental nature of democracy.
LR Physics can help you to diversify your Assets with Ethereum
Helping you through the process of opening a Cryptocurrency account (eg: Kraken.com) and its associated Financial Ledger, LR Physics will make sure your company is able to cover its cash position in Crypto-currencies.
Some of our clients and affiliates are using an Investment Policy which allows them to keep up to 10% of their current asset in Blockchain, Ethereum Classic and Community Ethereum.
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