As we all know due to the Coronavirus, economies around the world are badly affected due to which there is a major growth in the digital financial sector. We have reached out to a few industry leaders to share their opinions on how we can make our investment strategy and which assets we need to focus on in the near future. Here is what they had to say.
David Hamilton | Long time Bitcoinist and cryptocurrency journalist
The Corona virus appears to have shined the spotlight on these unique financial instruments. Thankfully, the pandemic came at a time when cryptocurrencies such as Bitcoin and Ethereum have maintained their blockchain for close to a decade. This record of unbroken trust continues to make the crypto market an appealing option for Today’s investors.
Patrick Stanley | Head of Growth at Blockstack
Bitcoin is schmuck insurance. When governments over print money (as we are seeing today) Bitcoin could be seen as a store of value where it can’t be inflated away. There will only be 21m bitcoins ever. A lot of people are exiting USD, real estate, and the stock market and putting it into BTC because of its reliability. It’s like digital gold except there is a huge information asymmetry about its value (i.e. not everyone knows about it or how to get it), so it’s still early days for price discovery.
Jay Zhou | Blockchain Entrepreneur | Angel Investor | Co-founder Loopring
I think because of the covid#19 many of us have been through a tough time. In order to improve our productivity and efficiency. More and more business turn into online or virtual business. Thus, digital currency will become a future money or sound money. To Be able to better understand this, I think bitcoin is the best study case for a beginner to learn. Bitcoin price has raised from 7200 to 11500-ish this year. 60% gain. And it is very liquid and legit now in most countries. My takeaway is start to buy a bitcoin, it’s a digital good, with a bit volatility.
Jen Buakaew | Head of Business Tokenization, GMO Internet INC
In times of uncertainties, I recommend investing in Bitcoin and other prominent cryptocurrencies as alternative investments or non-correlated assets” These alternative investments’ performance usually doesn’t follow that of more traditional asset classes such as stocks and bonds. During a pandemic such of that of Covid-19, amidst people’s fear, you want to invest in assets that move in the opposite direction of traditional investments, as an effective hedge strategy against market downturns.
ImNotTheWolf aka WolfOfPoloniex | Trader |Content Creator |Podcast
I think a good investment strategy during these times is to basically try and “swim with the whales”. All of the large institutional firms & smart money is looking at the US Federal Reserve’s moves to keep the market propped up, however, if the ‘FED’ decides to sell off, then the trend will change as the large institutional players begin to hedge their holdings by shorting the market. You can see what the FED is doing by visiting the website: https://fred.stlouisfed.org/
As for which assets to invest in, I personally prefer commodities like Gold or large Indices such as the S&P500. These ‘giants’ move relatively slow compared to individual equities, but still clearly mimic the momentum shifts caused by the FED. If you’re looking for something a bit more volatile & retail-friendly, then Bitcoin is a good digital commodity.
We would like to thank you all for sharing their thoughts and comments.
OroPocket is the universal alternate investment platform, allowing users to buy, sell and trade-in digital assets, instantly. With the banks, economies failing, we want the end user to become smarter about their wealth and have more options about their investments while enjoying liquidity on the same.