Building Blocks: Are Cryptocurrencies Right For You?

There’s been a lot of talk about blockchain technology lately, and every day our clients come to us with questions about new forms of digital assets. In particular, they mention cryptocurrencies and Bitcoin, the most popular and well-known.

These digital assets pose an interesting possibility insofar as they provide increased transparency and remove the middleman, and as a result, at some point down the line they could transform many industries. On the other hand, they have no underlying political or economic support (which some could see as a feature, and others could see as a bug), and if you’ve followed the news at all lately you know that their value is exceptionally volatile.

Perhaps you’ve heard from a well-meaning relative or friend that you’re foolish to pass up the opportunity to invest in some sort of cryptocurrency or digital asset right now. Every day the news reports are full of newly-minted paper (electronic?) multi-millionaires who invested in Bitcoin early on and have seen its value skyrocket. That trend may continue…or it may not.

We continue to research the evolution of this phenomenon and its potential implications on the financial industry and beyond. We remain open minded about new asset classes, assess how relevant trends may play out, and evaluate their value to our clients in the context of their individual needs and goals.

And that’s an important point which dovetails nicely with the underlying premise of our True Fiduciary™ Standards. Each individual has different levels of risk tolerance, different financial goals, and different opening postures. If your needs are analyzed in that specific context, by an advisor without conflicting goals, then you’ll know the advice you’re given places your interests first.

You might decide, after consultation with a professional, that the potential upside of blockchain is worth the attendant risk, or you might decide to take a wait-and-see approach, but if your advisor is somehow incentivized to push you in a particular direction, then you’ll never have clarity whether you’ve been properly counseled.

The technological landscape is changing so quickly, and so dramatically, that you need an unbiased advisor to steer you through it.


At PagnatoKarp, our focus is on YOU. We go beyond wealth management to simplify and elevate your lifestyle so you have more time to spend on what matters to you most.

We offer digitally integrated, in-house services for investment, planning, tax, legal, private banking, family governance, concierge, and travel. With True Fiduciary™ Standards and Family Office services, you receive transparent advice focused on safety of assets, simplicity, and cost.

To discuss YOUR needs, please call 703-468-2700 or email