Crypto Backed By Talmudic Teachings: How Ancient Wisdom Can Help Your Investments

• This opinion editorial by Konstantin Rabin explores the potential of Bitcoin being backed by Talmudic teachings.
• The article discusses how ancient money management strategies might be useful in modern times, and looks at the Gemara’s advice to divide wealth into three parts for investing.
• It suggests that a traditional Jewish diversified portfolio should include real estate, cash on hand, and risky investments like Bitcoin.

Investment Strategies From Ancient Times

As a huge supporter of all things crypto, especially Bitcoin, finance and technology writer Konstantin Rabin often wonders what our forefathers would have thought of this revolutionary technology. To figure out what lessons they may teach us today, he looks past the words on the page and into the meaning behind them to gain insight. After discussing this with a friend one night, he began considering why Bitcoin might even be backed by Talmudic teachings.

The Gemara’s Investment Advice

The Gemara is a component of the Talmud which includes investment advice praised for its simplicity and effectiveness. A specific reading from Tractate Baba Mezi’a 42a states: “R. Isaac also said: One should always divide his wealth into three parts: (investing) a third in land, a third in merchandise, and (keeping) a third ready to hand.” This suggests that to properly invest your money you should divide your assets into three equal parts spread between land/real estate, cash on hand, and risky assets – such as Bitcoin – forming a traditional Jewish diversified portfolio.

Why Real Estate?

Real estate is one of the most stable investments out there and has been practiced for thousands of years. With expectations of the real estate market growing at an annual compound growth rate of 10.7% from 2022-2031 it seems wise to keep some funds in real estate for wealth preservation and security purposes.

Cash On Hand

Having cash on hand gives you flexibility when making decisions about investments or spending opportunities that come up unexpectedly or quickly – something not available with other asset classes such as stocks or other securities which require more time to buy/sell due to their complexity/regulation requirements/etc.. Additionally having some cash can provide peace of mind during uncertain economic times as it allows you to quickly liquidate some assets if needed without taking too much loss or waiting too long for transactions to settle (as with stocks).

Bitcoin As A Risky Asset

Bitcoin offers several advantages over traditional asset classes due to its decentralized nature; it provides freedom from government control while offering high levels of privacy & anonymity when transacting online – features not seen with other investment options such as stocks or commodities which are heavily regulated & monitored by governments & financial institutions worldwide . Moreover because BTC is still relatively new & highly volatile compared to other asset classes means that it can potentially offer higher returns over time compared with less risky investments like land or cash on hand- making it an attractive option for those looking for higher risk/higher reward scenarios .