The 10 Biggest Myths About Cryptocurrencies - Part 6
In the series "The 10 Biggest Myths About Cryptocurrencies," let's take a closer look at the top ten most widely used claims about cryptocurrencies and their opportunities and risks. In doing so, we will daily explore a new myth and check it for accuracy.
The following text may offend parts of the Bitcoin community. However, even the biggest crypto romantics will sooner or later have to realize that bitcoin and the other crypto currencies have long since become a real investment option for institutional investors and investors.
The central basic idea of Bitcoin as a decentralized peer-to-peer currency has been to reduce the dependence on intermediaries in international money trading, and to make them completely superfluous in its perfect form. This objective also determined the mindset of the early proponents of cryptocurrencies as instruments for institution-independent action. Quite quickly, the Bitcoin developed as a symbol for the liberation of institutions and especially financial institutions.
This basic idea was reflected for a long time in the use of Bitcoin again. Thus, it was initially partially used within a slowly growing community as an alternative means of payment. As the use of Bitcoin as a means of payment and the advent of alternative cryptocurrencies (Altcoins) increased the acceptance of this payment method, the exchange value of these currencies also increased. This made cryptocurrencies interesting as an investment case as well - first and foremost from the point of view of the members of the crypto community.
Since then, however, a lot of time has passed. It can now be said that cryptocurrencies have long since been adapted and used by institutional actors. In fact, the crypto market in its current form is no longer so dissimilar to the classic securities market and in many aspects even has advantages over it.
Thus, the tokens now in circulation are a completely new asset class, which as a whole offers a potential for development that is still unparalleled. Thus, the total market capitalization of all crypto currencies so far this year has increased fifteenfold - and the trend is still upward.
Of course, a crypto-invest offers no return guarantee, let alone the security of a multiplication of the invested capital. Paired with an asset mix of traditional investment opportunities such as securities or commodities, cryptocurrencies can help diversify the portfolio. Especially the low correlation to other asset classes makes crypto currencies an anticyclical and robust investment, which in case of doubt can be able to compensate for temporary undesirable developments in other areas.
So it can be said that cryptocurrencies have moved out of the initial clientele corner and have long since arrived in the middle of (investor) society. From the point of view of institutional investors, cryptocurrencies can also be regarded as an attractive way to diversify their money and create opportunities.
Myth 6: Cryptocurrencies are not attractive to institutional investors
The following text may offend parts of the Bitcoin community. However, even the biggest crypto romantics will sooner or later have to realize that bitcoin and the other crypto currencies have long since become a real investment option for institutional investors and investors.
The central basic idea of Bitcoin as a decentralized peer-to-peer currency has been to reduce the dependence on intermediaries in international money trading, and to make them completely superfluous in its perfect form. This objective also determined the mindset of the early proponents of cryptocurrencies as instruments for institution-independent action. Quite quickly, the Bitcoin developed as a symbol for the liberation of institutions and especially financial institutions.
This basic idea was reflected for a long time in the use of Bitcoin again. Thus, it was initially partially used within a slowly growing community as an alternative means of payment. As the use of Bitcoin as a means of payment and the advent of alternative cryptocurrencies (Altcoins) increased the acceptance of this payment method, the exchange value of these currencies also increased. This made cryptocurrencies interesting as an investment case as well - first and foremost from the point of view of the members of the crypto community.
Since then, however, a lot of time has passed. It can now be said that cryptocurrencies have long since been adapted and used by institutional actors. In fact, the crypto market in its current form is no longer so dissimilar to the classic securities market and in many aspects even has advantages over it.
Thus, the tokens now in circulation are a completely new asset class, which as a whole offers a potential for development that is still unparalleled. Thus, the total market capitalization of all crypto currencies so far this year has increased fifteenfold - and the trend is still upward.
Of course, a crypto-invest offers no return guarantee, let alone the security of a multiplication of the invested capital. Paired with an asset mix of traditional investment opportunities such as securities or commodities, cryptocurrencies can help diversify the portfolio. Especially the low correlation to other asset classes makes crypto currencies an anticyclical and robust investment, which in case of doubt can be able to compensate for temporary undesirable developments in other areas.
So it can be said that cryptocurrencies have moved out of the initial clientele corner and have long since arrived in the middle of (investor) society. From the point of view of institutional investors, cryptocurrencies can also be regarded as an attractive way to diversify their money and create opportunities.
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