Self-Custody is all about Control

Happy New Year!

To start the year, instead of talking about the possible ETF approvals, I wanted to go a little further into some of the technology that comes with crypto and blockchain - self-custody. In the video, and in this post, we make analogies to the rise of streaming services like Netflix, and what we can infer from that growth.

🔐 The Rise of Self-Custody in Crypto

Self-custody is a game-changer. Originating with Bitcoin, it's about having a digital wallet that lets you hold and control your crypto assets. Think about it - no intermediaries, no asking for permission from banks or brokerages. It’s a radical shift from how we traditionally view asset control.

🌐 Losing Control in the Traditional System

In our current system, we might feel in control of our finances, but the reality is different. Our money in banks or our stocks with brokerages are technically under their control. Even our personal data is often owned by big tech companies. We're starting to realize how little control we actually have.

🚀 Analogies from the Streaming World

Remember when Netflix disrupted traditional TV? We went from watching scheduled programs to streaming our favorite shows anytime. This shift wasn't just about convenience or cost - it was about control. We loved the power to choose what and when to watch, even if it meant paying more.

💡 Implications for You as a Financial Advisor

1. Adapting to Client Autonomy: Just like people embraced streaming services for more control, they're likely to adopt crypto and blockchain for financial autonomy. This means clients might prefer having direct control over their assets, challenging traditional advisory roles.

2. Navigating the Self-Custody Trend: As clients move towards self-custody solutions, advisors need to stay informed about digital wallets and blockchain technology. This knowledge is crucial for providing relevant and up-to-date advice.

3. Understanding the Tech Shift: Recognize that this is more than a tech trend. It's a cultural shift towards autonomy and control. Staying ahead in this domain means understanding both the technology and the mindset driving its adoption.

4. Risk Management in the New Age: With greater control comes greater responsibility. Part of your role will be helping clients navigate the risks associated with self-custody and blockchain investments.

5. Educational Role: Many clients might be new to this world. Your role as an educator becomes even more critical, guiding them through the complexities of digital assets and blockchain technology.

To sum up, the world of finance is on the brink of a revolution, much like the one we saw in media consumption. As a financial advisor, staying ahead means understanding and adapting to these changes, helping your clients navigate this new era of control with confidence and clarity.

Feeling intrigued? Catch our full video below for a deeper dive!

Stay savvy,

Adam

P.S. I'm always here to chat about these exciting developments or any questions you might have. Don't hesitate to reach out!