Flush-Outs Among Cryptos Are Healthy
Finweek English|11 June 2021
Valuing cryptocurrencies and determining their correlation with traditional asset classes are becoming easier.
Mohammed Nalla
Flush-Outs Among Cryptos Are Healthy

People tend to take victory laps prematurely – both bulls and bears. From its most recent peak at $65 000 in April, Bitcoin’s precipitous fall to around $37 000, at the time of writing, represents a crumbling in the recent edifice of invulnerability among a newly-minted generation of crypto tycoons. (For the purposes of this piece, we will use Bitcoin and crypto synonymously).

Is it a loss of faith in new age “market gods” like Elon Musk, on-off supporter then detractor of Bitcoin? There is also the curious case of the DogeCoin millionaire Glauber Contessoto, who famously continues to HODL after staking his entire net worth on the meme coin, garnering his own troop of followers through the land of “diamond hands”. Maybe it’s China cracking down on Bitcoin while preparing to launch its own digital yuan? That said, if you followed the herd and bought at the peak, remember, herds tend to get slaughtered.

Perspective is important, so let’s zoom out. Recent gamification and “memefication” of markets erode the underlying merit of cryptocurrencies as an asset class.

Firstly, let me say that I support the ideological basis of why crypto exists. Crypto is an interesting innovation and this is likely just the start. Major central banks are also looking into this space, not just as regulators, but rather as potential issuers of central bank digital currencies (CBDC). The regulatory and policy implications as we move into an era of CBDC are huge; but a topic for another day.

Diese Geschichte stammt aus der 11 June 2021-Ausgabe von Finweek English.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

Diese Geschichte stammt aus der 11 June 2021-Ausgabe von Finweek English.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

WEITERE ARTIKEL AUS FINWEEK ENGLISHAlle anzeigen
THE HEALTH OF SA'S MEDICAL SCHEMES
Finweek English

THE HEALTH OF SA'S MEDICAL SCHEMES

As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.

time-read
7 Minuten  |
5 November 2021
The effect of Gilbertson's departure
Finweek English

The effect of Gilbertson's departure

With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.

time-read
3 Minuten  |
5 November 2021
Making money from music
Finweek English

Making money from music

Why investors are increasingly drawn to the music industry.

time-read
3 Minuten  |
5 November 2021
Conviction is key
Finweek English

Conviction is key

Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.

time-read
5 Minuten  |
5 November 2021
The post-pandemic toolkit
Finweek English

The post-pandemic toolkit

How CFOs can use technology to support growth.

time-read
4 Minuten  |
5 November 2021
Big city living exodus
Finweek English

Big city living exodus

Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.

time-read
3 Minuten  |
5 November 2021
Big compact, big value
Finweek English

Big compact, big value

Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.

time-read
3 Minuten  |
5 November 2021
On barriers to entry
Finweek English

On barriers to entry

There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.

time-read
2 Minuten  |
5 November 2021
Fear and greed in one index
Finweek English

Fear and greed in one index

To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.

time-read
3 Minuten  |
5 November 2021
Africa's largest data centre facility coming soon
Finweek English

Africa's largest data centre facility coming soon

Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.

time-read
3 Minuten  |
5 November 2021