THIS Is The Future Of Cryptocurrency – Market Expert Explains Why



what is up ladies and gentlemen and welcome back to another video here at the tank cache house today hope all of you are having a good one in today's video I'm going to be discussing what exactly may be the future of cryptocurrency and it might not exactly be what all of you expect I know a lot of traditional crypto investors put a lot of stock so to speak and the concept of one or two specific cryptocurrencies rising however Nayeem aslam a contributor to forbes kind of approaches it from a different perspective so I'll be going through that discussing what exactly could be the future of cryptocurrency and giving all of you my opinion so if you like this content drop me a like subscribe for more share with your buddies if you think that they need a bit of encouragement on the front of cryptocurrency or Bitcoin right now and anyway folks let's go ahead and get right into it so Nayeem starts by writing traditional investors would look for riskier assets when the bull market is in full throttle and investors run for the hills when bears are in town that is just a simple analogy without complicating anything however smart investors use a slightly different approach instead of the standard bear bull outlook they move their funds from riskier assets to those where they can seek safety for instance in a bull market sectors such as financial tech and energy are the most favorite sectors when the markets start to fall off the cliff portfolio managers and hedge funds start to favor sectors such as consumer staples they seek stocks with better dividend yield because even though the general trend in the market could be on the downside they still get a better yield relative to the overall market for cryptocurrencies though it is very different altogether first there is no such thing as a dividend yield so in the price falls there is little to no safety secondly it is grueling to come up with a model under which you can use an asset valuation model through which you can define a specific coin as a risk off investment thirdly the issue of correlation comes to the surface all kryptos except for a very few move in the same direction this means when bitcoin is under pressure the whole cryptocurrency arena Falls just looking at any price chart you can see that there is a serious correlation between Bitcoin and a third for example the big coins which dominate the cryptocurrencies space now having said this one trend which stands tall among any other is that investors have started to understand the crypto space a little more as compared to the preceding years the reason why I'm saying this is because asset-backed coins have become popular and the reason they stand taller during the time when bitcoin is under immense pressure is that they're pegged to a certain commodity or fiat currency for instance teather is a coin which is pegged to the dollar if you look at the market cap of teather from May 7th 2018 it has moved from 2.1 billion to 2.5 billion looking at the price of Bitcoin its price has moved from nine thousand five hundred twenty one dollars on May 7th to six thousand one hundred and thirty four dollars on May 13th so investors are moving out of Bitcoin to a certain degree they're putting less stock in the bigger cryptocurrencies fairly recently there have been some attempts to evaluate the cryptocurrency by measuring the network value these approaches aren't very nasan stages and it is immensely arduous to rely on them yet but one thing is for certain if hedge funds are going to be involved in crypto assets and include them in their portfolios they definitely need to understand the math correlation and science behind cryptocurrencies there is no clear correlation between the traditional stock market and cryptos this explains that one cannot say that when the traditional stock market is down investors flush their cash and decrypt owes although recently there has been some negative correlation between the SPX and Bitcoin the relationship clarifies that while the SPX has moved higher since early June the Bitcoin price has moved lower so one could assume that Bitcoin or crypto investors have moved their cash from crypto markets to traditional markets yes a few specific stocks which are involved in Bitcoin mining do you have a strong correlation in this area of research has gained enormous attraction for investors who want to include crypto exposure to their traditional portfolio the concept of using the portfolio theory along with crypto asset valuation is a powerful idea and I do believe that together they can yield some strong outcomes so in other words folks people are moving away from investing specifically in individual crypto currencies and they're beginning to take more of a portfolio approach that is conglomerating combining assets and combining traditional items that can help them make more money even if crypto is down and honestly that sort of approach is much more comprehensive and is more powerful for the future of crypto development for example if you only purchase to Google in your stock portfolio well you would probably be doing pretty well overall during times when Google specifically is down you're going to be having a bit of a rough time and it sort of works the same way with crypto currencies by only one you may see yourself struggle by several conglomerate and expand your horizons and you'll probably see yourself do quite well that's a method that I've used in the past for investing in cryptocurrencies and it has turned out pretty well so with that being said folks I want to hear all of your opinions on this sort of strategy do you agree with me is this the future of cryptocurrency investing do you disagree with me let me know down below leave a like subscribe share with your buddies and I'll see all of you in the next video and audios

16 thoughts on “THIS Is The Future Of Cryptocurrency – Market Expert Explains Why”

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