JMMB Elevate 4.0 Explores Diversifying Investor Portfolios with Cryptos 

The JMMB Elevate 4.0 virtual financial empowerment series on the final day, January 23, zeroed in on diversifying investment portfolios with one of the newer and topical investment instruments, cryptocurrencies. 

Led by event host and JMMB Group chief marketing officer, Kerry-Ann Stimpson, a stimulating conversation on investing in cryptocurrencies in the Jamaican landscape, was had with Keisha Bailey, investment strategist and CEO, Profit Jumpstarter, and Ross Mac, a Chicago-based economist, CEO/Creator of Maconomics and tv host, dubbed, “Wall Street rapper”.

While cryptocurrencies, or cryptos as they are more informally called, is a digital unit of account designed to work as a medium of exchange for acquiring goods and services with no financial intermediaries in the process. Cryptocurrencies are created using cryptographic techniques that enable people to buy, sell or trade them securely. Examples of cryptos include: Bitcoin (BTC), Binance Coin (BNB) and Ethereum (ETH). 

According to Mac, with crypto “if you get in early, you have the ability to make a lot of money.” Adding, “It’s also proven over the past two years to be a great investment if you’re a long-term investor. You’re able to put US$1,000 in and in a year or two it’s at [20 or even 50 times that value]. It’s one of those things where if you get to the right coin at the right time, you really have the ability to change your entire trajectory from a wealth and financial standpoint.”

Mac said that crypto investing can be for everyone, but, as with every other serious commitment made in life, careful consideration must be given. “If you get into this asset you have to do your homework… (because) investing in crypto is a roller coaster ride,” shared the Wall Street rapper.
“At the end of the day, when you’re investing, you want to look at the entire pie,” he said. “If I’m a person that is 60 years old and I’m getting ready to retire, then I do not recommend putting 100 per cent of your savings into crypto. In October or November, Bitcoin was at US$64,000, today (January 23) it’s at less than US$35,000, so as you can see, in a matter of two (of three) months, the asset is cut in half.” The converse is also true, Bitcoin went down in value over 50 per cent, seven times in the past, but has gone on to hit new highs in value each time. “You (therefore) have to ask yourself what is your investment horizon – ‘How long do I have before I need this money?’, and ‘What is your risk tolerance?’” 

Mac compared buying crypto to Black Friday sales, meaning, one should always be on the hunt for a purchase when the price of the asset has fallen significantly. However, goods bought during Black Friday sales, such as clothes and electronics, are liabilities, while cryptos are appreciating assets because they are likely to gain value and can lead to wealth and prosperity.

“If you’re a person that is looking to invest in crypto, you have to understand that yes, this is surely a volatile asset over a long time, but if you remain a long-term investor, you will be rewarded in the long run,” he said.”

Bailey in further reiterating Mac’s point, said anyone looking to invest in cryptos should be prepared for volatility, but more importantly, investors should determine what portion of their portfolio should be allocated to this asset. 

“You’re not going to build your portfolio with 100 per cent crypto. It’s highly volatile, you will be stressed out. It’s overwhelming. I teach my clients that you want to have an amount where you’re comfortable with that volatility.” 

CEO/ Creator of Maconomics, Ross Mac cautioned that similar to all things digital, cryptocurrency is also prone to cyber-attacks, and there is no “back office to call, so you have to know what you are doing.” He therefore emphasized the need to be hypervigilant in doing these transactions, and shared that investors can use a ledger nano, to reduce the risk of being hacked. 

Although there is no crypto market in Jamaica yet, there are still ways of investing in it. “You have indirect ways of owning cryptocurrencies, (like) Exchange Traded Funds or ETFs (which) are close to stocks, but where the value is based on the underlying cryptocurrencies that they’re tracking, and are for those who are not (as) big risk takers”. 

Bailey is optimistic that Jamaica will have some form of cryptocurrency in the future, based on the trends being set by the Bank of Jamaica (BOJ) with its digital currency. “The BOJ is embarking on a system of digital currency which would, over time, reduce the dependency on physical currency, but to be clear this is not a form of crypto,” the Profit Jumpstarter CEO said. 

Adding, “It (crypto in Jamaica) wouldn’t be something near term. A lot of things need to happen (before). A coin needs to be created, (therefore I expect) it would be years in the making.”

While not providing investment advice, Bailey noted, although there are downsides to investing in cryptos, “You should (consider) some form of cryptocurrency in your portfolio, start small and don’t go overboard and come out all guns blazing”.  Adding, ‘Start investing with what you have, no money is made on the sidelines. If you believe that crypto is the currency of the future, like I do, get invested.”

Express Fitness, Domino’s, WATA, Live Simple Beauty Products, and Bresheh partnered with JMMB to provide giveaways for attendees of JMMB Elevate 4.0.