Crypto-Investing with Ancient Wisdom: How the Talmud Can Guide Us
• The article discusses the importance of understanding traditional money management strategies from thousands of years ago, particularly Talmudic teachings.
• It talks about how investing into land, cash on hand, and risky assets is a great way to diversify one’s portfolio according to the traditional Jewish approach.
• Finally, it posits that Bitcoin can be seen as a modern version of this strategy since its value is based on scarcity and decentralization.
Traditional Money Management Strategies
As a huge supporter of all things crypto, and especially Bitcoin, my thoughts often drift to a time before this revolutionary technology appeared on the scene, and I stand in awe of what it is bound to accomplish. I wonder: How would our forefathers have looked at it, and how can we use their teachings, applying the thought of the old thinkers to our modern existence? While the money management strategies that can be found in books from thousands of years ago might seem crude or irrelevant to us today, I have always tried to look past the words on the page and into the meaning behind them to figure out what lessons they might teach us today. One day, while chatting with a friend about this, we considered why Bitcoin might even be backed by Talmudic teachings.
The Gemara
I’m not a religious person by nature, but it is hard to avoid conversations that stray off into that realm when sitting with some of your Jewish friends who are keen students of the Talmud and all things relating to Judaism. So, one night as I sat with one of these friends of mine, he brought up the Gemara, a component of the Talmud that incorporates investment advice and is often praised for its simplicity and effectiveness. The 63 books of the Gemara serve as a commentary on the Mishnah which in turn serves as first major writings Jewish oral traditions spanning hundreds of years. The section that my friend was referring to though was reading goes follows:
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The Investment Portfolio
The idea is that ,in order invest your money proper way you should divide your assets into three equal parts spread equally among land ,cash hand risk assets .Hence this what traditional Jewish diversified portfolio would look like :A Third In Land Land — or if generalize real estate — one most stable investments out there .Buying holding onto land any other type residential commercial real estate has been practice for thousands years just valid today ,with expectations real estate market growing compound annual growth rate 10 .7% 2022 2031 .Hence keeping portion funds real estate seems great wealth preservation growth potential capital appreciation .
Cash On Hand
Keeping some cash hand important because allows liquidity emergencies occur .When times get tough having cash available put towards unexpected expenses such medical bills car repairs prevent forced sale life-long investments cushion blow such events make sure personal finances remain intact .It also allows investor take opportunities arise market whether they buy stocks bonds anything else suddenly comes favorable terms taking advantage those opportunities quickly paramount success long-term financial goals investing strategy.
Risky Assets
Finally having some percentage portfolio dedicated riskier assets allows investor capitalize market movements well benefit gains made stock markets crypto markets alike when markets move direction favor investor having enough capital allocate right asset right time reap rewards such investments tend offer higher returns but come more risks associated them hence need only take calculated risks well thought ones achieve desired results taking too much risk leads losses rather than profits thus prudent experience both fields key success here .
Bitcoin As A Modern Strategy?
My friend pointed out that these three components—land/real estate; cash on hand; risky assets—might actually find an analogue in Bitcoin itself! This revolutionary cryptocurrency is built on two core concepts: scarcity & decentralization; thus making it akin to “investing” in land & gold respectively combined with taking speculative “risks” via trading/investing within volatile markets (as opposed to keeping cash at hand). Hence my friend argued that maybe we can view Bitcoin as an upgraded version of traditional money management strategies due its ability store value securely & protect against inflation compared banks & fiat currencies!
