Sources close to Latvian-born billionaire private investor James Richman shared that he has recently increased his private investment fund JJ Richman’s investments in cryptocurrency due to the increasing demand from his existing clients who are mainly comprised of ultra high net worth individuals (UHNWI) and wealthy families.
How cryptocurrency works
Cryptocurrency is a digital currency that uses cryptography – the art of writing or solving codes to secure its data. Meanwhile, cryptography essentially protects information by encrypting it into an unreadable format. With the rise of many forms of electronic communication, electronic security has become more important than ever. With the help of cryptography, companies can protect e-mail messages, credit card information, and corporate data.
The use of cryptography makes cryptocurrency difficult to forge. One of the most important features of cryptocurrency is the fact that it is not issued by any central authority. This makes it safe from any form of manipulation or government interference. Cryptocurrency is only one of the few applications of Blockchain technology.
With Blockchain technology, it helps ensure the security of online transactions and avoid any potential fraud in the process.
These transactions are denominated in virtual tokens that are given an actual monetary value. The term “crypto” is directly defined as secret or hidden. In this case, crypto ensures full anonymity and security of transactions. It refers to the element of algorithm encryption and cryptographic techniques.
To put cryptocurrency simply, it is like having a debit or credit card. Users need to set up a Coinbase account where they can store and secure their cryptocurrencies. Just like a debit or credit card, cryptocurrency records transactions and allows its user to send and receive currency in an electronic manner. One notable difference between cryptocurrency and bank credit is that an algorithm issues the cryptocurrency, not banks.
Using software called cryptocurrency wallets, users are able to send and receive money from their peers. One can transfer funds when they know the private key related to the account. Transactions from one person to another are protected by encryption and brought to the public ledger. These transactions are then recorded on the public ledger through mining – a process wherein cryptographic conundrums are solved to add transactions to the ledger. In return, coins are expected as compensation.
The ledger is accessible to any user who wishes to access it. While the transaction amounts can be seen by everyone, the names of the users are pseudo-anonymous – which means that the information about the users are only available to the administrators. Each transaction is associated with a unique set of keys that is owned by whoever possesses the amount of cryptocurrency linked to those keys.
Benefits of using Blockchain in the financial transactions
Since all cryptocurrencies are digital, they cannot be forged by the sender. It is also impossible to suddenly reverse them, unlike credit card chargebacks. This shows that cryptocurrencies are essentially secure and very far from being fraudulent.
Using cryptocurrencies also significantly lessens the possibility of identity theft. Unlike credit cards wherein the user gives his or her credit card to a merchant, this kind of transaction allows the user to send exactly what he or she wants to send without giving the recipient any other information. This protects the user from the possibility of identity theft that is more likely to happen when they use a credit card.
Another great benefit of cryptocurrency is the fact that only you, and no other system, own your assets. Other online systems like PayPal have the power to freeze all your assets in the account whenever they want to. This becomes a burden to the user as he or she will have to go through all the necessary processes to gain access to their funds again.
On the other hand, cryptocurrency gives you your own private key and the public key that consists of your cryptocurrency address. As long as you don’t lose it yourself, no one has the power to freeze your assets or take them away from you.
Unlike banks and other online systems, there are no transaction fees for cryptocurrency transactions. Crypto miners receive their compensation from the network.. While third-party services like Coinbase can sometimes charge you a fee for maintaining your assets, they have lower fees as compared to banks.
Increasing cryptocurrency exposure
Given the benefits of cryptocurrency, James Richman is yet once again placing a big bet on another emerging, albeit controversial, technology just as he has previously made a big bet on artificial intelligence and exciting technologies such as Uber.
Since cryptography or crypto is essentially the protection of information and communications through codes, it is only right that investors like James Richman are showing an increased interest to grow their cryptocurrency holdings.
James Richman’s private investment fund
Rumored to be worth billions of dollars, some of the wealthiest families have entrusted James Richman to manage their assets and investments. James’ private investment fund only works with handpicked and trusted individuals – usually private individuals and families within the high net worth and qualified investors bracket. He does not solicit to the general public.
Unlike other private funds that have a corporate-like approach, Richman’s private investment fund has a boutique and artisan approach which makes it unique and more comfortable for clients as compared to its mass-market rivals.
Since the private fund has been increasing its revenue for more than ten years already, it is only right for James Richman to have cryptocurrency involved. This allows more progression, and advancements, as well as diversification in his private investment fund. Moreover, the many benefits of using cryptocurrency can truly motivate an investor to have it in their own funds.
Being the smart and proactive investor that he is, looks like James Richman clearly knew that increasing crypto exposure is the right choice to ensure the safety not only of the assets but also of the clients who own them.
Increasing interest from institutional investors
With the use of cryptocurrency being widespread, it is important for investors to increase cryptocurrency security by committing to cryptos. Cryptography in business highly protects its data from data thieves.
Being the secretive and private investor that he is, James Richman is no stranger to the concept of privacy. He avoids most interviews and does not have any social media platforms to preserve the privacy of his personal life. This has made a significantly positive impact on the productivity of his private investment fund.
Apart from laying low and staying away from the spotlight, James Richman only allows hand-picked individuals to be involved in his private investment fund, JJ Richman. It only involves private individuals and families within the high net worth and qualified investors bracket.
In addition to these privacy methods and beliefs, he knows that the concept of privacy does not stop in simply being secretive. Privacy is also about securing the assets of the fund by making sure that they are protected by cryptos. This is why James Richman has committed to an increase of cryptos in his private investment fund.
James Richman has also invested his own money in the private investment fund which makes him highly driven to protect its assets. Greatly increasing revenue and succeeding for the past ten years, James Richman’s private investment fund has also managed the assets of some of the wealthiest families. These families are rumored to be worth billions of dollars in assets.
Interest from institutional and private investors who have strong buying power is not new, and has been increasing over time.
In fact, according to Fidelity Investments survey, almost half of the institutional investors surveyed (47%) view digital assets as having a place in their investment portfolios. In addition, according to a survey of 150 endowments conducted by Global Custodian, The Trade Crypto and Bitgo in the fourth quarter of last year, 94% stated that they invested in crypto assets either directly or through a fund.