Monday, October 21, 2019

The entire purpose of a Self Managed Investment (SMI) like Bitcoin

The entire purpose of a Self Managed Investment (SMI) like Bitcoin Enhanced is that the value is generated and held by token holders. This creates independence from the fiat system so that like gold or property, the value of the asset is not lost in the event of systemic market failure.

However, unlike investing in a derivative such an a hedge fund or ETF, where liquidity is present from the outset due to the underlying asset, the liquidity of an SMI depends upon the adoption of the asset. This takes time and like Venture Capital firms, early investors need to consider a medium to long term horizon until liquidity builds. SMIs are also similar to VC investments in that diversification, i.e. holding many SMIs, mitigates the risk of the failure of any specific investment.

https://bitcoinenhanced.io/


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