Despite the ongoing downturn in the cryptocurrency market, SkyBridge Capital CIO Troy Gayesky praised Bitcoin as an asset class and highlighted its benefits. In his recent interview, he recalled that his company has invested not only in the main cryptocurrency, but also in Ethereum.
In his opinion, the two largest digital assets will be the most preferred options for saving capital in the future.
Bitcoin and Ethereum are the most popular representatives of the cryptocurrency industry. In December 2019, they were recognized as the most profitable investment of the decade. BTC has brought more than 62 thousand percent of profit in ten years, and ETH has grown by 17.9 thousand percent.
We have checked the actual data: coins continue to bring good returns for their investors. For example, here is information on Bitcoin, which has grown by 246 percent over the past year.
Bitcoin price movement indicators
At the same time, the main token of the Ethereum network has grown by 692 percent over the year.
It is important to note that BTC and ETH are 50 percent and 56 percent behind their rate records, respectively. This means that the investors who sold the asset at the peak earned much more percent of the profit for the year.
According to professionals, in the future, these coins will retain the value of the investment just as well.
Best long-term investment
Gayesky admits that the price of BTC changes very quickly, with high volatility often being presented in a negative light by cryptocurrency critics. However, Bitcoin has the potential to become the broad payment infrastructure of the future, so its benefits cannot be ignored. Here is an expert’s reply, in which he shares his attitude to what is happening in the digital asset market. The quote is from CryptoPotato.
It is a volatile asset, but still weakly correlates with traditional finance. We think the investment risk reward is now trending upward again.
That is, the investor assumes that in the future, the connection with digital assets will still pay off. This is especially true because of the small correlation – that is, the relationship – with other asset categories. This means that cryptocurrencies may well protect investors from what is happening in the traditional field of finance.
Troy Gajesky
The current shock to the supply of coins in the market is very similar to what happened in October and November 2020, Gajeschi is sure. He continues.
If you look at the data on the Bitcoin network right now, you will see that many strong cryptocurrency holders are reasserting themselves and accumulating BTC at the expense of those who entered the market at the end of last year.
This situation in the cryptocurrency market is always observed. First, the coins are bought by professional investors who play for a long term and are ready to buy an asset as its rate sinks. Then prices begin to rise, after which newcomers enter the niche and accelerate the upward movement of asset values. This means that now a new stage of niche growth may well be at its initial stage.
Anthony Scaramucci, former head of Skybridge Capital
Gayesky also noted that SkyBridge Capital always strives for profit that does not depend on fixed income and shares. That is why the company chose to invest in the cryptocurrency market, and do it with the help of the two largest coins by market capitalization, that is, the product of the rate by the volume of tokens in circulation.
The importance of the development of the crypto space is also realized in the large financial giant Fidelity: on the eve of their representatives announced an increase in the staff of the subordinates of the wing of the firm, which deals with digital assets. The Fidelity management argued for this step by the increased demand for crypto from institutional investors, that is, large professionals.
In an interview with Bloomberg, Tom Jessop, president of Fidelity Digital Assets, said that in addition to hedge funds and family offices, pension funds and corporate treasuries are now looking to make money on cryptocurrencies as well. As a result of the growing demand, the company will open vacancies for more than 100 new employees, that is, the staff of the division will increase by about 70 percent .
Conclusion: large financial institutions did not panic because of the spring collapse of the crypto market. Rather, on the contrary, they use the Bitcoin drawdown as a profitable reason for accumulating coins and expanding their own infrastructure for interacting with the crypt.
We believe that the attention of seasoned investors to the cryptocurrency industry can, in fact, be considered a guarantee of a chance for renewed niche growth in the future. It is likely that this will have to wait for several months, but professionals are ready to place their bets in advance. Traditionally, we recommend that you study the market yourself before making any investments.
