The Old Man’s Views
We know more regulation is coming, so you had better get used to it
This week, I have been in Lisbon, catching up with a few people and chewing the fat with some of my old mates. Peter Kristensen of JPFS and Pedro Borges and Luis Alves Gomes, the co-founders of Criptoloja.
It's great to hear that your mates are doing so well and being out of my north Portugal "bubble" really has helped me focus on what is going on elsewhere.
Although I will never shake off my dislike and dismay at what is happening in the business as far as political interference is concerned, for the young guys in the industry, their focus must be to make their company improve, grow and make as much money out of it as possible.
I'll continue to argue about crazy regulations made by unqualified authorities, whose aim in life seems to be to prove that their control over our lives is all that matters.
However, sometimes, I realize I am banging my head on the wall when trying to battle against these idiots.
Therefore, perhaps we should focus on how we will benefit from these unfair rules, which are continually piling up on our shoulders.
Two things make you the boss, one is approving everyone's salary, and the other is making the rules.
Nearing the end of my working life, I am happy to speak out against rule makers and governments. But for those of you with years of work ahead, it's probably best to get on with making a career and an income: working within the rules.
None of us knows what laws governments will apply to the industry during the coming year. Still, those with the best chance to grow have already positioned themselves to operate under any potential regulatory framework.
For many in our wild west industry, compliance issues are something they must adapt to if they wish to keep their businesses growing.
But some players have good experience working with ever-changing government regulations and have built their platforms to adapt to any potential changes.
One of these companies is Concordium #CCD.
I currently own no CCD and have very little connection to the company, but I know a few people involved.
An influential shareholder in Concordium is a very successful ex-banker who has been navigating his licensed companies through compliance issues for decades. This company is pushing the edge in innovation and employs great people in senior positions.
Concordium is the new kid on the block compared to the rest of the business. Still, because it has been built with a heavy focus on compliance, I think it is a coin to watch and perhaps collect.
The other topic I want to touch on this week is funds, funds of funds and ETFs.
Cryptocurrency funds are relatively new, with most funds no older than 4 years.
The performance and scope of these funds vary, but it is a great way to expose yourself to cryptocurrency volatility if you do not have trading experience.
You will need to find a fund that suits your purpose and risk appetite, and it is worth doing some homework on what is available.
I am a strong promoter of diversity and like funds that involve themselves in many asset classes, like a mixture of commodities, foreign exchange and crypto, but each of us wants something different.
JP Fund Services are, of course, experts on funds. If you are looking to invest in a Fund or establish a fund, JPFS should be your first port of call.
We live through a time of massive change both in geo-politics and finance. We should not underestimate the changes that we are going through, nor overestimate how much we know about what is going on.
We have a war in Europe, whilst a global pandemic is still affecting us, and these things are hitting us just a few years after a global economic crisis. I've never experienced so many generational disasters in such a short time - so meaningful forecasting remains difficult.
I can offer a few suggestions and probably have a few ideas that might work, but one thing is for certain, we are living through times when our politicians have less knowledge than we do. Less knowledge and more power. Now, that is a recipe for disaster.
However, it's not all "doom and gloom".
History tells us that when the shit hits the fan, the opportunity is everywhere. You just need to grasp it when you see it.
Be bold but be measured. And remember, in the current environment, doing nothing is more of a risk than making a decision.
Until next week...