The excitement in the year around in crypto currencies and tokens is palpable, it seems like the new gold rush, as a matter of fact, just recently google has reported that more people interested in buying bitcoin than they are gold. BTC has seen tremendous gains as have ETH and other young currency upstarts. This past year is ramping up to be one of a great flurry of activity in transactions, mining and other aspects in the space. Cryptocurrency is becoming less for the technically oriented few and becoming more a popular culture phenomenon.
The causes of this are many, some could subscribe to the central thesis of the space, decentralisation, others could subscribe to the efficiencies it can bring saving both time and money, and many may subscribe to the space seeking to find immense riches in their speculation and search for value gains. General market trends such as political uncertainty, less faith in fiat and the creative potential that decentralisation unleashes also helps to shape the way for the increased embracing of the crypto currency space.
BTC, the pioneer of the space has witnessed more than a 750% increase in growth since the start of this and now commands a price that hovers around $7000 per individual unit of currency. Another dominant cryptocurrency, ETHEREUM which has made significant contributions to the space and is utilized by many startups in the space has it’s cryptocurrencies, ethers grow from a mere $10 value per individual currency unit to it’s current $350. The ICO’s themselves, the new vehicle of funding for startups in this space sees significant raises of capital for quite a few of them.
Curb your enthusiasm: Be cautiously optimistic
“Warren Buffett once said that as an investor it is wise to be “Fearful when others are greedy and greedy when others are fearful.” … When others are fearful, it may present a good value buying opportunity. Keep in mind, the price is what you pay, and value is what you get—pay too high a price and returns are decimated.”
This may be the case in today’s craze. As many watch and see the value of bitcoin rise many are seeking to get in on the action and this is evidenced in the recent surge of users joining different platforms like Coinbase which has seen tremendous growth in it’s userbase, they’ve added upwards of 90,000 users in one day!
There are two sides in this market, the naysayers and the optimists, some say that price of these cryptocurrencies will continue to rise and that they have only begun to hit their stride, while others state that the market is due for a correction.
Yet, the space, no matter how far it has progressed is still in it’s early stages and possesses it’s own bad actors and can experience various large and rapid fluctuations. Regulators are still seeking to keep up and figure things out and this leads to another question. What role does regulation play in a decentralised world?
Role of Crypto Funds
Yet, bold future facing firms are capitalising on this market and are rolling out crypto funds. Crypto funds allow an investor to have exposure to this growing asset class yet minimise downsides as they aren’t directly participating in the market. Cryptofunds allow for an investor to place money with a cryptocurrency -amp; token portfolio manager. This means less hassle and less issues for enterprising investors. You can now utilise the brains of these cryptofund managers to follow the markets and act accordingly. They can do the tiresome leg work of finding the right ICO’s, timing the market properly to acquire currencies at a certain time and exit the currency when necessary. Of course, they provide all these services for a fee.
Prominent people in this space?
Naval Ravikant, the founder of AngelList who is now a founder in Metastable Capital, a firm which manages an upwards of $35 million in digital assets. Polychain Capital and Blockchain Capital. There are quite a few who are entering this space and forging forward into the future. According to Autonomous Next, there are approximately 124 crypto funds, 90 of them that have jumped into this space just this year.
A lot is happening in the space right now and many are planning for the future to see how they can capitalise.
Will you join them? What are your thoughts?