The cryptocurrencies are shaping up as the money of the future. It is a growing market that shows itself as an investment alternative to traditional options. David Osio, CEO of Davos Financial Group, offers some recommendations when deciding on bitcoins how to store cryptocurrency.
The drastic variations of recent months have accentuated distrust among investors. However, “cryptocurrencies are a market that will eventually correct itself and will remain in the future,” Osio calculates.
“Bitcoin is a fraud,” said Jamie Dimon, president and chief executive officer (CEO) of JP Morgan, raising serious questions about cryptocurrencies as an investment alternative and means of payment.
But the rejection of that position has come from many sectors that see the reaction of Dimon as the complaint of a representative of the bank against a competitor that grows rapidly.
The position of Dimon was destroyed when the day after its hard declaration, the Bitcoin News portal reported that JP Morgan Securities and Morgan Stanley had invested 2.5 million dollars in shares of Bitcoin XBT (one of the exchange houses that operate with cryptocurrencies) .
The other threat that lights up alarms is that of an alleged burst of a bubble in this market or its evident volatility.
“There are several elements that explain the accentuated changes in this market and it is important to make a clear difference. There is volatility in the short term, but in the long term it is a different story, “says Ansberto Rached, director of the cryptocurrency fund Lydians Capital.
In his opinion, short-term fluctuations include the lack of knowledge about how this market works or the access that anyone can have to it, given that, if many people do small-scale operations, they will have an impact in the short term. .
“Another element is the long way to go in this technology. In other words, the continuous innovations that are generated every day change the perspectives of the sector, “says Rached.
The news also has an impact that can hit the market to drop 30% in a week, then bounce back just as quickly.
“The Chinese government said recently that it would shut down certain agencies that converted yuan into bitcoins, and that knocked the market down for a few days; Meanwhile, Koreans and Japanese gave new momentum to the transactions and the market recovered, “says Rached.
The director of Lydians Capital notes that today there are more than 800 cryptocurrencies, many of which are not justified, and have a market capitalization of more than one million dollars. “There you can generate a bubble effect, because many of these currencies do not make sense and take advantage of the existing optimism to go out to the market.”
“The sustained growth of more established currencies – such as bitcoin and ethereum – indicates that there is no bubble effect.
In our future prospects we continue to see them on the rise, “concludes Rached.
INVEST OR NOT INVEST
David Osio there is some basic recommendations for people and companies wishing to invest in cryptocurrencies, and especially bitcoins:
- The market is not stable in the short term, so you have to think in the medium and long term.
- It is a market in full expansion and offers very good opportunities that should be studied by the hand of a professional financial advisor, in order to filter the different alternatives according to the budget and investment profile of each one.
- This technology is here to stay and is breaking through with great force, so it will soon become a natural option for any investment portfolio. It is convenient to anticipate.
- If you are torn between participating or not, we will only tell you that it is expected that the cryptocurrency market will be between 200,000 million dollars and 250,000 million dollars at the end of the year. Today it is 130 billion dollars.
“There are many advantages that cryptocurrencies offer at the investment level, but they are certainly still in an expansion stage so that they can be taken as a global system”, concludes Osio.