As crypto continues to become a more attractive investment opportunity, thanks in large part to the rise of institutions and Bitcoin’s appreciation to over $9,000 at the time of writing this article, some are starting to wonder: “Can I retire with crypto?”
Well, one hedge fund thinks so. The firm, Crypto Ratings, which released a report on cryptocurrency’s long-term potential on Wednesday, has found that through a long-term trading strategy, Bitcoin has the potential to be used for retirement savings — even if you only invest in your 30s.
The firm’s research was led by Crypto Rating’s chief analyst Evan Frankel and Stephanie Yang and in tandem with financial experts from Edelman Financial Engines LLC. The latter of which is “the nation’s largest independent financial planning and investment advising firm.”
The report found that if someone started investing in Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), Litecoin (LTC), Cardano (ADA), Dash (DASH), Monero (XMR), NEM (XEM), NEO (NEO), EOS (EOS) or Zcash (ZEC) on January 1st
As a matter of fact, the hedge fund manager is such a believer in the crypto market that he thinks it could become the world’s largest asset class in 30 years.
Kaminsky, who founded Los Angeles-based New Wave Capital Management in 2017, said that he sees the cryptocurrency market as being worth more than $40 trillion. The CEO also mentioned that Bitcoin (BTC) could go on to hit $100,000 and perhaps even $1 million per coin.
Bitcoin stands as the world’s largest cryptocurrency by market capitalization, which currently stands at over $158 billion. The total cryptocurrency market cap stands at over $174 billion, according to CoinMarketCap data.
The cryptocurrency markets are notorious for their volatility. But for early investors, the volatility may be worth it if the payoff is there.
According to recent reports, a new hedge fund known as Multicoin Capital has managed to raise $100 million to invest in cryptocurrencies and blockchain technology. And its managers believe that the market will be worth over $1 trillion in just 30 years.
Investing in a Cryptocurrency World
Multicoin Capital’s founder Kyle Samani has said that he believes that the crypto industry will be “the most important trend in technology over the next 10 years” and that “the next generation of technology is going to be built on top of blockchains.”
The fund plans to focus its investments on “privacy coins” such as Zcash and Augur, along with more established currencies like bitcoin and Ethereum. However, it won’t be investing any money into Ripple (XRP) because, according to Samani, it is not really a cryptocurrency at all.
Samani believes that cryptocurrencies are still in their infancy, but he does predict that there will be winners and losers, stating: “There are going to be 20 or 30 coins that we think are compelling investments over
The idea of a hedge fund that doesn’t invest in stocks or bonds may be hard to wrap your head around, but one crypto-focused hedge fund is proving it can be done.
This week, Polychain Capital — an $800M crypto-only hedge fund — announced its acquisition of a stake in real estate firm Propy. It is the San Francisco-based firm’s first non-blockchain investment since it began operating in 2016.
But how does this tie into the firm’s overarching vision for the future of finance? We talked to Polychain founder Olaf Carlson-Wee about why he’s so bullish on crypto and what he sees as the role blockchain will play in our lives over the next 30 years.
“Blockchains are designed to facilitate a shift towards programmable trust,” Carlson-Wee said. “I think we’ll see more and more companies being built on top of these new forms of programmable trust.”
The key thing to understand is that blockchain isn’t just another kind of database; it provides security and encryption that traditional databases cannot match. Given that it was originally designed for use with Bitcoin, it makes sense that blockchain would initially be used to secure digital assets like cryptocurrency.
But over time, Carlson-Wee believes
There’s no shortage of companies in the cryptocurrency world that claim to be working on the next big thing.
While some are doing just that, there’s a lot of hot air out there. One firm, though, is taking a unique approach to trading cryptos and believes it has found a way to make “passive income” for investors over time.
Aluna Crypto Currency & Trading is a Canadian-based company that launched earlier this year. It’s headed by two traders with experience in traditional finance markets: Andrew Dunn and Maxime Gachot. The duo aims to replicate the returns of hedge funds with its own crypto fund, but open it up to smaller investors who wouldn’t normally be able to participate in such a vehicle.
When it comes to crypto, there’s no shortage of people who think they know what the future holds.
Some of the best-known investors in the world are betting that bitcoin, ethereum and other digital assets will become a fundamental part of how business is done in the future.
The problem with predicting the future is that there are so many variables in play. No one can predict where technology will go or how quickly it will get there.
Crypto critics have pointed out that digital assets have no intrinsic value, which means that their value is whatever people are willing to pay for them.
They also point out that governments could shut down the entire industry overnight if they wanted to, which would make most digital assets worthless.
But what if all of these problems were solved? What if crypto assets could become just as valuable as traditional assets?
If we assume that everyone in the world agrees on what a bitcoin is worth, then we can begin to see how this might happen.
It’s been around for a long time, and hasn’t gone away.
Now, we have a new kid on the block – cryptocurrency.
Bitcoin and its ilk are here to stay.
You might have heard about it from friends and family, or through media.
Some of you might have even invested in it already.
For those who haven’t, don’t worry. You still have time!
And for those who have, congratulations! You are part of a small group of super early adopters, who could reap big rewards down the line.