Hackernoon logoWill Cryptocurrencies Finally Become The Right Investment for You in 2020? by@Sergeenkov

Will Cryptocurrencies Finally Become The Right Investment for You in 2020?

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@SergeenkovAndrey Sergeenkov

Cryptocurrency advocate and analyst, growth hacker

Cryptocurrencies continue to conquer the finance industry, and the number of cryptocurrency enthusiasts and investors is growing daily. Is this the right time to join them? Consider these three reasons for becoming the next crypto investor. 

An Overview of the Crypto Market So Far

The first digital currency, bitcoin, was invented a decade ago. That was just the start, though, and very few people knew about it until 2013. Besides, no one thought that bitcoin could be the ‘star investment of the decade.’ 
However, since 2013 the crypto space has experienced exponential growth- growth that even institutional investors have failed to ignore. Such growth and market capitalization can be compared to some traditional retail markets, such as the multibillion mattress market. The financial market saw a significant increase in skyrocketing mattress companies such as Casper and Nectar, which can be likened to bitcoin and ethereum in the crypto world. Currently, there are more than 1700 digital currencies globally. 
In 2017, bitcoin came into the limelight and skyrocketed wildly. Cryptocurrency trading has become a widespread trend, and the number of crypto investors has exceeded 600 million. Crypto analysis companies like BTC Peers boldly claim that blockchain technology and cryptocurrencies are here to shake the modern economy to its core. 
Are you experiencing a significant shift in the global financial system? Definitely yes. But why should you invest in the cryptocurrency market? Before we dive into some of the reasons why you should invest in the crypto space, let’s look at the booming cryptocurrency interest from institutional investors.  

How are Investors Reacting to Crypto Markets?

In October 2019, Grayscale (the world’s biggest crypto asset manager) released its digital asset investment report that covered the third quarter of 2019. A closer look at Grayscale’s Q3 report shows a booming interest in digital currencies from institutional investors. 
It is official: institutional investors have entered the cryptocurrency race. Bloomberg reported that large buyers, like hedge and endowment funds, had been consistently buying more than $100,000,000 worth of cryptocurrencies through private transactions. 
Miners are now scheduling multiple, over-the-counter (OTC) coin sales. Some have even launched their liquidity desks and operations to serve the projected $250 million to $30 billion in trades. 
Previously, institutional players stayed far from the crypto space because of the high volatility of the major cryptocurrencies. As bitcoin and ether prices have seemed to attain some stability in 2019, more and more traditional financial institutions have started diversifying their portfolios with crypto assets. 

Wolfs Group, Morgan Creek and Jack Dorsey are Also Enter the Game

Wolfs Group, a company with a long and active history on market, that using a mixed investment model, specializing in both private and venture capital, acquired Ferpay. Through the Ferpay Platform agreement, the Wolfs Group has entered into a partnership with VISA for the production of multicurrency cards and crypto to fiat gateway. Additionally, the Wolf Group has also acquired automation firms for the installation of bitcoin ATMs across Europe. Wolfs Group activity perfectly shows how well-established groups of companies are building infrastructure for our future crypto environment. 
Morgan Creek Capital Management LLC, an SEC-regulated investment company, and Bitwise Asset Management, the first index fund for crypto, partnered in 2018 to offer institutional investors with a Digital Asset Index Fund (DAIF). DAIF is a crypto fund that securely monitors huge investible digital assets. 
Mark Yusko, Morgan Creek CEO, strongly believes in the underlying technology behind cryptocurrencies. Besides, Morgan Creek Capital has turned its attention to security tokens, which they think is an excellent opportunity for institutional investors who want the trust and security of their investment. 
According to Antony Pompliano, the founder of Morgan Creek, they have been approached by several institutional investors who want to gain exposure to cryptocurrencies. Pompliano believes that by joining hands with Bitwise- the number one cryptocurrency index provider- they can offer an institutional-grade solution to their customers. 
In March 2019, Twitter and Square CEO Jack Dorsey said he would hire developers to devote all their time to Bitcoin Core and other “cryptocurrency ecosystem” projects. Jack became crypto’s unlikely hero after he was featured in Joe Rogan’s podcast, The Joe Rogan Experience, earlier in 2019. 
Speaking to Rogan at the time, he said: “I believe the internet will have a native currency. I don’t know if it is bitcoin, but I think it will be given all the tests it’s been through, the principles behind it, and how it was created.” He continued saying that bitcoin was something that was born on the internet, developed on the internet, tested on the internet, and therefore it is of the internet. 

Bottom Line

With that said, I believe the keen interest from institutional investors and traditional finance industries for crypto will have a good impact in the crypto space since the significant concerns of investors are security. Having credible investment companies, such as the Wolfs Group and the Morgan Creek, will encourage the masses to invest in digital currencies.
Disclaimer: I do not have any vested interest in any of the mentioned projects. The views and opinions expressed are those of the author and is not investment advice. Do your research.


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