Experts are confident in the superiority of crypto over traditional assets in the long run. Why?
The crypto market is a much more dangerous place to invest, but in the long run, investing in digital assets brings investors much more than buying shares. This opinion is shared by the CEO of ANB Investments, Jaime Baeza. That is, while some are panicking about the rapid fall of Bitcoin in the last couple of weeks, others can benefit enormously from what is happening - at least in theory. Let's talk about what's happening in more detail.
Note that now it is not so easy to believe in the ability of cryptocurrencies to grow. The ongoing collapse of the coin market, which was exacerbated by the situation with UST and Luna , is to blame . The collapse of the "stablecoin" from Terra forced the company to sell off assets, which also affected the value of popular coins in reserves.
As a result, the current situation in the coin market looks like this. Pay attention to the results of price changes during the last week: they really reflect what is happening in the niche.
Despite this, experts recommend not to give up on digital assets. Moreover, the latter still have an advantage over representatives of traditional finance. Especially if we consider investments in the long term.
What is worth investing in?
This week, the crypto market experienced one of the biggest crashes in its history: niche capitalization fell by more than 30 percent from $1.8 trillion to $1.2 trillion. Bitcoin fell below $27,000 for the first time since late 2020, losing about 30 percent of its value over the same period.
Not only the crypt passes through the "black stripe" . In particular, the stock market has also experienced one of its worst moments since 2020. For example, the tech-focused Nasdaq Composite index fell more than 12 percent in the same time period, falling below 12,000 points. Well , the market value of technology giants like Apple and Microsoft fell by about 13 percent, while Tesla shares fell by 23 percent
Jaime Baeza believes that in this situation it is better to analyze the ratio of risks to potential profits in the long run, that is, with an eye to several years. Here is a quote from him published by the news outlet Cointelegraph .
In the long run, without going into too much detail, I believe that crypto provides a much better risk-to-return investment.
Note that there is no point in arguing with the ability of the crypt to bring crazy profits. For example, according to the results of an extremely profitable 2021, top coins increased in price by more than 10 thousand percent. For clarity, we again present the result of changes in cryptocurrency rates last year.
Lily Zhang, CFO of crypto exchange Huobi Group, expressed a similar sentiment. He stated that the volatility of cryptocurrencies could guarantee “more opportunities for substantial profits.” Here is his retort.
It is important to note that we are in the middle of a new cycle of US Federal Reserve rate hikes. Both cryptocurrencies and stocks can be subject to sudden capital outflows, making them susceptible to deep corrections.
See also: The next Bitcoin halving is already closer than the previous one. What does this mean for crypto investors?
From a fundamental point of view, Bitcoin is still doing pretty well. For example, the day before, Emirates, the largest airline in the United Arab Emirates, announced its plans to introduce crypto payments and launch unique token trading services. Emirates Chief Operating Officer Adel Ahmed Al Redha said at a press conference at Arabian Travel Market that the airline will be hiring new staff to work on blockchain projects.
The airline is considering using the technology to keep track of aircraft, Al-Redha said. In addition, Emirates can use the metaverse concept to transform its business processes such as training, sales, web service development, and so on. The company's management is confident that this will make the process of developing new skills "more interactive."
In addition, Al-Redha also noted that the air travel industry is gradually reviving after the COVID pandemic, as tourists become more and more. To expand its reach, the company is introducing new technologies, relying on crypto payments, NFTs and metaverses. And it looks like a very far-sighted step, given the prospects of the crypto market.
We believe that the results of the experts' analysis are indeed true. Yes, it is not easy to believe in the prospects of making money on digital assets now, but this usually happens in bearish trends. But when the sphere is again ruled by bulls, then stocks will again seem to be the choice of only boomers who are not able to understand the crypt.
Look for even more interesting things in our millionaire crypto chat . There we discuss other little things related to the world of blockchain.
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