Investment is a huge aspect of any person's financial activities. Investments provides a sense of security and assurance to a person because of its potential to provide great returns and profits. Some standard investment methods which we are familiar with include bonds, stocks and cash. These methods are quite straightforward, affordable and popular among people of all financial classes, especially the middle class. But there is another less prominent category of investments, called Alternative Investments.
As the name suggests, alternative investments are a class of investments that are different from the mainstream investment options. They include private equity, hedge funds and managed futures, real estate, commodities and derivatives contracts. You might be unfamiliar with most of these terms, or have very little idea about them, because they are not the conventional investments that most people undertake. The fact is that alternative investments are mostly owned by those with high-net-worth and accreditation, or by institutional investors owing to the fact that these investments are quite complex with limited regulations.
"In investing, what is comfortable is rarely profitable."- Robert Arnott
Alternative investments have some important advantages. They help diversify both return and growth streams and help increase the income. They also have less interest risk as well as minimize drawdown risk. Alternative investments have begun to gain traction in the past couple of years due to its different approach for investors and also because long-term investors are grasping the importance of including alternative investments into the diversification of their portfolios. In fact, alternative investments act as a defense rather than an offense investment. They also give the investors a risk/return profile that is different from that of equities, bonds or cash.
Unfortunately, these advantages are weighed out by its limitations. The asset classes are less regulated, often offer limited transparency and are often difficult to measure and evaluate. This is because the transactions that are carried out are complex and unique. The lack of regulations leads to an increased risk of fraudulent activities. There is also a lack of means for publishing authentic performance data and advertising to other investors. This translates to low liquidity of the alternative investment assets.
Another major disadvantage is the high minimum investments and fee structures compared to mutual funds and exchange-traded funds (ETFs). Additionally, changing and evolving regulations to provide additional security for investors, has only increased the cost load on alternative asset managers, which makes the industry more incentivized to increase the assets under management, rather than focusing on enhancing investment returns. Because of this, the benefits and importance of alternative investments go unknown and unreachable to the common public who cannot afford these high expenses. Thus, there is a dire need for a solution which eliminates the limitations that exist in the current alternative investment schemes and helps it reach the common public at an affordable rate. This is exactly what DarcMatter aims to achieve by using blockchain technology.
The Blockchain Solution
Blockchain technology provides security, transparency and affordability -- features which current alternative investment assets are lacking in. Thus, DarcMatter has created a blockchain-based decentralised platform which works on the crypto-token called DMC as the utility token, which incorporates the features of blockchain technology into alternative investment funding. Not only this, the blockchain implementation leads to the provision of additional capabilities like effortless cross-border investment, documentation tracking for multi-consensus and logging and additional asset classes being seamlessly distributed through the entire investor vertical. It is these features that sets DarcMatter apart from the blockchain investment ventures by its contemporaries.
DarcMatter has already received positive recognition and several accolades for its product. It has reached several countries across the globe and is ready to scale for more. DarcMatter has found the perfect application for blockchain technology, which properly complements the uses and features of the technology. At this rate, DarcMatter is destined to get only more and more successful and be the best in business.
Website- https://dmc.darcmatter.com
Telegram- https://t.me/DarcMatter
ANN- https://bitcointalk.org/index.php?topic=2990067.0
Published by- smithjones
Profile- https://bitcointalk.org/index.php?action=profile;u=1936039
