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Investing Sharks Smell The Big Crypto

10 August 2018 18:20, UTC
Investing Sharks Smell The Big Crypto
By Daniil Danchenko

The viability of the cryptocurrencies investment has always been a hot topic. However, while many investors, big and small alike, stay skeptical about bitcoin and altcoins, more and more people start to come around.

This is especially true in the countries with unstable economic climate and political instability in a region when people see crypto as a way to save their money.

However, that is also true for the developed countries. According to the recent study conducted in South Korea, 22.7 % of local youth buy cryptocurrency. For 70.2% of them - that's an investment, for 34.1% that's a way to pay for various goods and services.

That situation is no different in Germany,  where recent social studies indicate that youth in the age between 18 and 30, sees potential in cryptocurrency and almost a third of them wants to buy it in the near future as an investment.

Furthermore, American scientific organization National Bureau of Economic Research, states that new investors should start building their portfolio from 6% of the cryptoassets. According to the study, despite its high volatility crypto has a higher potential from the point of risk and potential returns.

But that does not stop at the private interest on the subject, as traditional VCs started to notice cryptoverse. While being mostly uninterested in crypto and startups before, now they actively invest in the cryptoprojects. For example, notorious “bigwig” VC Bart Smith claims that bitcoin is the best way to invest in crypto and predicted it’s growth because of the currency’s potential to create new types of services and its convenience and lack of transactional fees.

This situation is not out of the ordinary, and in fact - quite normal. It’s obvious that youth will be the first to adopt and invest in the new and exciting financial tools and trends. However, in the light of the recent events on the market, this is a noteworthy indicator of the eventual mainstream acceptance of cryptocurrencies.

Despite that, it is 100% reasonable for the institutional investors to stay skeptical about this whole crypto thing and call it a “speculative stock.” As CEO of Panthera capital said: “This is a matter of the point of view”. Moreover, he has a point. For the new investors, bitcoin is a high volatility asset that bounces up and down at the insane rate. For Dan, who bought bitcoin as low as 100$ per coin, bitcoin turned out to be a highly profitable asset that brought him a 53% increase in profits.

And institutional investors are keen to change it, that was one of the main insights that Mike Novogratz shared with the world during his interview with The Street. Just like Paul Revere who warned founding fathers of America about the british troops, he warned cryptoworld about “bigwigs”.

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