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On this episode of Intelligent Money Minute, we interview Matt Hougan, Chairman of Inside ETFs on the risks of cryptocurrency and bitcoin. From bitcoin to dogecoin to chainlink, cryptocurrency is a reigning hot topic in the financial realm. That being said, there’s an influx of information and “success” stories making it hard to learn the benefits and or risks of this new age of finance. Matt Hougan is optimistic about the potential future of cryptocurrency, but there are significant risks as well. First, there’s massive behavioral risk in cryptocurrency. For example, Bitcoin has been highly volatile despite its high returns causing people to chase returns or to panic at the bottom. Second, there are potential future legislation concerns or a lack of proper controls on cryptocurrency.
As Matt mentioned, there are a number of risks out there, and always be something to fear. At Intelligent Investing, one of our wealth management principles is Faith in the future.
We want to maintain a positive outlook on life, even when things appear dark or grim. We also believe in Diversification– the spreading of risk and reward across various factors and asset classes. If you never own enough of any one thing to make a killing in it, then you shouldn’t have to worry about owning so much of that thing, that you get killed by it.
Matt Hougan Bio
Matt Hougan is one of the world’s leading experts on crypto, ETFs, and financial technology. He is Global Head of Research for Bitwise Asset Management, creator of the world’s first cryptocurrency index fund. Hougan is also Chairman of Inside ETFs, the world’s largest ETF conference. He was previously CEO of ETF.com, where he helped build the world’s first ETF data and analytics system. Hougan is co-author of the CFA Institute’s Monograph on ETFs. He’s also a crypto columnist for Forbes, and a three-time member of the Barron’s ETF Roundtable. For more resources from Matt Hougan click here.