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Crypto’s – Spruiking the interest of the big guys

December 2, 2020
Tim Young

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Crypto’s – Spruiking the interest of the big guys

I don’t know about you, but every time I have started to try and read something about crypto currency, my eyes glaze over and something in my brain wigs out and refuses to process what I’m reading. I have almost been subconsciously jubilant when the prices of these currencies have been smashed after hitting extraordinary valuations. Warren Buffet doesn’t own any because “they have no value and they produce nothing.”

I don’t know about you, but every time I have started to try and read something about crypto currency, my eyes glaze over and something in my brain wigs out and refuses to process what I’m reading. I have almost been subconsciously jubilant when the prices of these currencies have been smashed after hitting extraordinary valuations. Warren Buffet doesn’t own any because “they have no value and they produce nothing.”

I think I’ve been wrong about these digital assets, with the calibre of people now looking at them. I am now starting to change my ways and my interest is pricked. There are growing  discussions amongst some very smart and successful money managers about these, to me, enigma investments, so I thought it’s about time I start giving them the respect that they may deserve. Let’s take a look at some of these “genius” investors and what they are saying about these digital assets.

Raoul Pal, a former Goldman and GLG portfolio manager and former Legg Mason CIO Bill Miller, were both very vocal and very much fighting against their peers by saying they thought there was more to the digital assets and that they did have value. 

Paul Tudor Jones, in a CNBC interview gave his endorsement when he stated that “bitcoin was a bet on human ingenuity and that it has a lot of very smart and sophisticated people who believe in it.”

In mid November 2020 we also had billionaire macro investor Stanley Druckenmiller come out and say the below:

 

“I’m a bit of a dinosaur, but I have warmed up to the fact that bitcoin could be an asset class that has a lot of attraction as a store of value. Frankly, if the gold bet works, the bitcoin bet will probably work better because it’s thinner, more illiquid and has a lot more beta to it.”

 

And then we had hedge fund manager Biller Miller state the below:

 

“I think every major bank, every major investment bank, every major high net worth firm is going to eventually have some exposure to bitcoin or what’s like it. The bitcoin story is very easy, it’s supply and demand. Bitcoin’s supply is growing at around 2.5% a year, and the demand is growing faster than that and there’s going to be a fixed number of them.”

 

Macri Investors are adverse to volatility and are renowned for sticking to their convictions and riding the cycles. It looks like these digital assets are starting to get the attention of these guys and they are being dragged in by both the digital world we are moving into but also by the high networth individuals that are also involved. These mascro guys have become wealthy by being ahead of the curve on investing at early stages. Now that we are seeing them take an interest in the digital currencies, could it be fair to say we are still at very early stages of development for these investments?

The Best Crypto Trading Platforms in 2020:

1. PrimeXBT:
In under 3 years of operation it has grown from launching with a waitlist of more than 150,000 traders to today managing up to $2 billion worth of global trade each and every day. It has the lowest fee schedule of any major cryptocurrency trading platform in the industry with a rate of 0.05% being charged for all trades. PrimeXBT provides bank-grade security measures throughout its platform, which are integrated into the core of how the platform functions. As a result of this focus on providing high-quality security, PrimeXBT has never been hacked or breached by hackers.

2. Binance:

Launched in 2017 and from the point of view of fees it’s important to note that Binance actually has one of the highest fee schedules of any cryptocurrency trading platform in the market. Even with the maximum reduction trading fees by staking the BNB coin of 25% reduction, Binance’s fees are still 5 times more expensive than platforms such as PrimeXBT.

When it comes to security, Binance has a mixed track record. The company was hacked for $40 million of their users’ money. However they did pay back the losses to the users, and are still in business to this day .

Binance has a broader offering of crypto assets than its competitors. However as a negative it doesn’t list any traditional assets or currency assets on its trading platform.

3. Coinbase/Coinbase Pro:

Coinbase is part of the furniture in the cryptocurrency room and has been so for a number of years. The Coinbase platform has very high quality security measures implemented throughout the site and has never been hacked. Compared to the others, Coinbase does have one of the more expensive fee schedules within the cryptocurrency industry.

Coinbase is a cryptocurrency-only trading platform, this limits the opportunities that are available for generating profit by doing so.

Institutional investors, such as hedge funds, have Coinbase as their “Goto” platform because of the quality of the technologies on the platform, however many retail traders avoid using Coinbase due to its high fee schedule as they search for lower costs.

2020 has been a tremendously busy period for Reach Markets. We’re currently engaged in a number of exciting investment opportunities. Click here to receive the latest information on upcoming deals.

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