VAST Snapshot: Explaining Cryptocurrency

Published On: December 30, 2021Categories: GVA Business Development

You’re likely getting a lot of questions from clients and prospects about cryptocurrency (and Bitcoin). To help explain this new digital asset class, Victory Capital’s Mannik S. Dhillon CFA, CAIA, President of VictoryShares and Solutions presented to GVA top producers at VAST in Austin earlier this month.

  • Please also see information at the end of this article on a follow-up call on January 12 @ 10:00 AM ET with Mannik and Joe Geary, GVA’s Victory Capital direct contact.

To begin, one of the commonly shared feelings voiced by the VAST attendees was that the word “currency” didn’t seem accurate as cryptocurrency and assets are more of an investment. Some of these crypto assets have a utility like oil, a commodity that gets transferred into products that get consumed. However, we are urged to look at it more similar to gold or silver in that it is something you hold onto that you hope goes up in value.

Dhillon also explained cryptocurrency is a “democracy of ownership” placing commerce in the hands of the people instead of a centralized government. The paper dollar in your pocket is made by the government whereas with crypto, there is no single entity at the center of it. Enter the blockchain…

Investopedia describes a blockchain as a distributed database that is shared among the nodes of a computer network to maintain a secure and decentralized record of transactions. They are most known for their role in cryptocurrency systems such as Bitcoin. In Bitcoin’s case, blockchain is used in a decentralized way so that no single person or group has control—rather, all users collectively retain control. The “block” refers to blocks of data, or evidence of receipts for the transactions that are happening, stored electronically in digital format. It is basically a public ledger.

Dhillon explains that in order for a transaction to happen, a network of decentralized “operators” on the blockchain are needed to essentially approve or verify that transaction, like Bitcoin. These operators are called “Miners” and they verify transactions by solving a cryptographic. For their efforts and work in doing that, they will get rewarded with some fraction of the Bitcoin.

It is important to note that Bitcoin is not synonymous with the entire crypto asset opportunity. The recommendation is if someone wants to invest in Bitcoin, or crypto assets in general, they should do so broadly. In addition to Bitcoin which is the largest crypto asset by market capitalization, there are various additional types of crypto assets emerging including Ethereum, Litecoin, Uniswap, and Filecoin.

For more information from Victory on crypto assets and to review the presentation slides, please refer to the links below as well as the link to the January 12th Zoom follow-up with Mannik and Joe:

  1. A link to the Victory Capital Crypto Presentation
  2. FAQs that can help you navigate questions from clients like
  3. Client webinars that Victory Capital recently conducted on Crypto
  4. The link below explains Victory Capital’s 5-Star ETFs and Funds
  5. Crypto Asset Follow-up Call for all GVA Advisors (**Look for your Outlook Invite from James Spinelli)
      • Meeting ID: 836 6916 1314
      • Passcode: 638893

Victory Capital Contact: Joseph Geary, Regional Sales Director | email:  jgeary@vcm.com

 GVA Contact: GVA Communications Team

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