• The article discusses how the teachings of Talmud can be applied to modern money management strategies, such as investing in Bitcoin.
• It describes the traditional Jewish diversified portfolio, which includes a third of funds invested in land and real estate, a third kept on hand for liquidity, and a third invested in risky assets.
• The author makes the argument that investing in Bitcoin could fit into this model and potentially be beneficial to those looking to diversify their portfolios.
Understanding Talmudic Teachings
This is an opinion editorial by Konstantin Rabin, a finance and technology writer who is a huge supporter of all things crypto, especially Bitcoin. He often wonders what our forefathers would have thought about it and if we can apply their teachings to our modern existence. In particular, he considers if Bitcoin could even be backed by Talmudic teachings.
The Traditional Jewish Diversified Portfolio
Rabin has been looking past the words on the page of various books from thousands of years ago to figure out what lessons they might teach us today. During one conversation with a friend about this, they discussed why Bitcoin might even be backed by Talmudic teachings. A component of the Talmud called the Gemara offers investment advice and consists of 63 books offering commentary on the Mishnah which spans hundreds of years of oral traditions. This section reads: “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” –The Gemara, Tractate Baba Mezi’a 42a
The idea behind this is that you should divide your assets into three equal parts spread equally among land or real estate investments; cash on hand for liquidity; and risky assets like stocks or bonds. Hence, this is what the traditional Jewish diversified portfolio would look like: A Third In Land
Real Estate as an Investment
Land or real estate are some of the most stable investments out there and buying and holding onto them has been done for thousands of years just as much today since expectations show that real estate markets will grow at an annual growth rate between 2022-2031 at 10%.7%. Having a portion dedicated to real estate then seems best for preserving wealth while not exposing yourself too much risk either way.
Bitcoin as Part Of The Portfolio
The author then argues that investing in Bitcoin could fit into this model as well since it also serves both as an asset class with potential upside opportunities but also comes with volatility risks similar to other more traditional investments like stocks or bonds so therefore it could actually serve as part of one’s diversification strategy within their overall portfolio – just like any other asset class would do! With its decentralized nature making it attractive for investors both big & small alike; plus its ability to provide near instant transactions with low fees compared to other methods out there – these features all make it easier than ever before for anyone interested getting involved & perhaps taking advantage too!
In conclusion then when considering why someone might choose Bitcoin over more traditional investments – there are plenty reasons why it can work well within any kind of portfolio &especially within those based off guidelines found within ancient texts such as those found through Talmudic teachings! Its decentralized nature provides many benefits such as lower fees & near instant transactions; plus its volatility means that although there may be some risk involved still offers potential upside opportunities too which may ultimately prove worthwhile over time when managed properly!