Lessons in Crypto with Edmund McCormack from Dchained

Rapid changes in blockchain and cryptocurrency technologies are creating opportunities where opportunities simply didn’t exist before. In this episode of The Yield, Peter Kerr welcomes ​​Dchained co-founder and managing partner Edmund McCormack for a conversation about blockchain, cryptocurrency investing, and risk management education.

Key Takeaways:

[1:21] Education or investing — which came first for Edmund?

[6:03] Who really needs to understand the technical side of investing in bitcoins?

[8:02] Key components to successfully entering the crypto space. 

[9:50] Offerings of the lesser known blockchain technologies. 

[11:38] Web 3.0 and the role it will play in blockchain and decentralization. 

[20:52] What are the true supply drivers of bitcoin? 

[25:01] Is blockchain headed toward a dot com-style bubble burst? 

[28:51] A comparison of blockchain to gold. 

[32:38] Finding a place for crypto in your investment portfolio. 

[35:29] Educational resources to expand your investment horizon.

One of the most common reservations that new investors have about crypto is that they just don’t understand the inner workings of the systems at play.  It can be overwhelming to try to understand exactly how blockchain works, but in reality, how much do any of us really know about the complex algorithms that make any of the Internet work? You may not understand the complex systems that make audio and video work together in near real time, or any other number of technologies that make business happen, but the average smart user or investor really doesn’t have to know everything about these technologies to benefit from them. 

Generally speaking, people look at the face value of a consumer product or service, and then they invest in the commercial value of it.   According to Edmund, it is a major misconception to feel like you need to be a computer scientist or that you need to be highly technical from a development standpoint to get involved in the crypto space, when really, that’s just not the case. 

So what should a savvy investor focus on instead? 

Take the advice from someone who has been deeply invested in crypto for over 10 years.  Edmund makes it easy – just start with the basics. Take time to learn about the big picture and to understand the four major fundamental cryptocurrencies that are the building blocks of the entire system.  By looking at crypto through the same lens as you would equities, it becomes clear to see which steps to take first.  Just as a smart investor would buy into an index fund rather than stock picking, there are potentially major benefits to focusing on the main crypto building blocks rather than on any one particular – or popular – coin. 

Along with cryptocurrencies, Web 3.0 is another rapidly developing aspect of the decentralization of finances, but what exactly will a world with Web 3.0 look like? Edmund walks listeners through the possibilities that are transforming the landscape as it merges with blockchain, and the bottom line is that these technologies are creating opportunities to add value in ways that simply didn’t exist before. 

Many investors wonder about the true drivers behind blockchain, and whether some of the novelty coins are going to fade away over time.  According to Edmund, just as the dot com bubble separated the struggling businesses from the strongest ones, the most valuable blockchain offerings will persist over time while those that are not as viable are not going to last.  And when many consider bitcoin as valuable as gold, it is expected that the value of bitcoin is going to last for a long time. 


With highlights on the educational resources that can help expand your investment horizon, insights into the regulations that are being put in place surrounding blockchain and a promising look at all that the future of bitcoin holds as it continues to mature, there are a variety of reasons to consider this as the next place to expand your investment portfolio.  For more information, visit www.yieldstreet.com today.

Take all of our content on the go with you and listen on demand no matter where you are.  Subscribe on Apple Podcasts, Spotify, YouTube, or wherever podcasts are available so you don’t miss an episode.

Published:

02/16/2022

How helpful is this content?

Share this article:

Join a community of 400,000+ members

  • Gain access to unique offerings previously reserved for the ultra-wealthy

  • Customize your portfolio for income, growth, or a balance of both

Sign up with email

What investors are saying about Yieldstreet

Apr 2022

The due diligence, risk management, and product education materials are thorough, excellent, and easy to use and understand.

Manoj J
Member since 2019
Apr 2022

Excellent and unique selections that I can't find elsewhere.

Jonathan S
Member since 2019
Apr 2022

The platform delivers in a very concise manner. Easy to get a clear understanding at a glance from the web or mobile app.

Tim S
Member since 2021
The testimonials presented on this page have been provided by actual investors in Yieldstreet funds without compensation. Yieldstreet has selected the testimonials, and certain testimonials have been edited to remove personally identifiable information and for brevity. Testimonials were not selected based on objective or random criteria, but rather were selected based on Yieldstreet's understanding of its relationship with the providers of the testimonials. The uncompensated testimonials presented here may not be representative of other investors' experiences, and there can be no guarantee that investors will experience future performance or success consistent with the testimonials presented.

The Yield

Our weekly podcast providing ideas about how to make money work for you and bring you closer to your dreams.

Since inception, over $2.8B has been invested on Yieldstreet

Join today for free to access alternative investment opportunities.

Investors

Originators

Resources

Company

App StorePlay Store

Check out our new podcast!

The Yield

1 Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses.

3 "Annual interest," "Annualized Return" or "Target Returns" represents a projected annual target rate of interest or annualized target return, and not returns or interest actually obtained by fund investors. “Term" represents the estimated term of the investment; the term of the fund is generally at the discretion of the fund’s manager, and may exceed the estimated term by a significant amount of time. Unless otherwise specified on the fund's offering page, target interest or returns are based on an analysis performed by Yieldstreet of the potential inflows and outflows related to the transactions in which the strategy or fund has engaged and/or is anticipated to engage in over the estimated term of the fund. There is no guarantee that targeted interest or returns will be realized or achieved or that an investment will be successful. Actual performance may deviate from these expectations materially, including due to market or economic factors, portfolio management decisions, modelling error, or other reasons.

4 Reflects the annualized distribution rate that is calculated by taking the most recent quarterly distribution approved by the Fund's Board of Directors and dividing it by prior quarter-end NAV and annualizing it. The Fund’s distribution may exceed its earnings. Therefore, a portion of the Fund’s distribution may be a return of the money you originally invested and represent a return of capital to you for tax purposes.

5 Represents the sum of the interest accrued in the statement period plus the interest paid in the statement period.

6 The internal rate of return ("IRR") represents an average net realized IRR with respect to all matured investments, excluding our Short Term Notes program, weighted by the investment size of each individual investment, made by private investment vehicles managed by YieldStreet Management, LLC from July 1, 2015 through and including July 18th, 2022, after deduction of management fees and all other expenses charged to investments.

7 Investors should carefully consider the investment objectives, risks, charges and expenses of the Yieldstreet Prism Fund before investing. The prospectus for the Yieldstreet Prism Fund contains this and other information about the Fund and can be obtained by emailing [email protected] or by referring to www.yieldstreetprismfund.com. The prospectus should be read carefully before investing in the Fund. Investments in the Fund are not bank deposits (and thus not insured by the FDIC or by any other federal governmental agency) and are not guaranteed by Yieldstreet or any other party.

8 This tool is for informational purposes only. You should not construe any information provided here as investment advice or a recommendation, endorsement or solicitation to buy any securities offered on Yieldstreet. Yieldstreet is not a fiduciary by virtue of any person's use of or access to this tool. The information provided here is of a general nature and does not address the circumstances of any particular individual or entity. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of this information before making any decisions based on such information.

300 Park Avenue 15th Floor, New York, NY 10022

844-943-5378
[email protected]

No communication by YieldStreet Inc. or any of its affiliates (collectively, “Yieldstreet™”), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Nothing on this website is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any securities transaction.

Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in the investors’ portfolios. Any investment information contained herein has been secured from sources that Yieldstreet believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor.

Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by Yieldstreet or any other party, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.

Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Additionally, investors may receive illiquid and/or restricted securities that may be subject to holding period requirements and/or liquidity concerns. Investments in private placements are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.

Alternative investments should only be part of your overall investment portfolio. Further, the alternative investment portion of your portfolio should include a balanced portfolio of different alternative investments.

Articles or information from third-party media outside of this domain may discuss Yieldstreet or relate to information contained herein, but Yieldstreet does not approve and is not responsible for such content. Hyperlinks to third-party sites, or reproduction of third-party articles, do not constitute an approval or endorsement by Yieldstreet of the linked or reproduced content.

Investing in securities (the "Securities") listed on Yieldstreet™ pose risks, including but not limited to credit risk, interest rate risk, and the risk of losing some or all of the money you invest. Before investing you should: (1) conduct your own investigation and analysis; (2) carefully consider the investment and all related charges, expenses, uncertainties and risks, including all uncertainties and risks described in offering materials; and (3) consult with your own investment, tax, financial and legal advisors. Such Securities are only suitable for accredited investors who understand and willing and able to accept the high risks associated with private investments.

Investing in private placements requires long-term commitments, the ability to afford to lose the entire investment, and low liquidity needs. This website provides preliminary and general information about the Securities and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This website does not constitute an offer to sell or buy any securities. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials. Yieldstreet™ is not registered as a broker-dealer. Yieldstreet™ does not make any representation or warranty to any prospective investor regarding the legality of an investment in any Yieldstreet Securities.

Banking services are provided by Evolve Bank & Trust, Member FDIC.

Investment advisory services are provided by YieldStreet Management, LLC, an investment advisor registered with the Securities and Exchange Commission.

Our site uses a third party service to match browser cookies to your mailing address. We then use another company to send special offers through the mail on our behalf. Our company never receives or stores any of this information and our third parties do not provide or sell this information to any other company or service.

Read full disclosure
Copyright © 2022 YieldStreet, Inc.
Privacy PolicyWebsite Data Collection PreferencesAccessibilityTerms of UseForm ADV Disclosure BrochureForm CRS