HONG KONG, HONG KONG – JUNE 15: As a visual representation of the digital Cryptocurrency, Litecoin (LTC), Monero (XMR), Bitcoin (BTC), Ethereum (ETH), Ripple (XRP) and Dash on June 15, 2018 in Hong Kong, Hong Kong. (Photo by S3studio/Getty Images)
You know we are at the top of the hype cycle on blockchain and cryptocurrencies when examples of peak crypto include glistening fleets of Lamborghinis as a reflection of price spikes and talk of crypto-utopia with no central governments. Nonetheless, there are a number of key risks that plague this asset class and stand in the way of broader market adoption and stability. While there is no doubt cryptocurrencies, digital tokens and blockchain-based business models are here to stay, understanding how risk interplays with this emerging market and their underlying technologies will not only help protect investors, it will also give regulators a steady hand and, hopefully, guide how entrepreneurs are approaching risk management in their projects, which is not easily done after the fact. One unique facet that blockchain-based projects bring to the market is that unlike the analog economy, which hopes to code…
