Cryptocurrency prices may have had a rollercoaster ride in recent months, but no one should doubt technology based on the blockchain is here to stay.
That’s the view of CEO and founder of global expat financial services deVere Group founder and CEO Nigel Green.
He is convinced a seismic shift in the way cryptocurrency investors think has tilted the balance away from get-rich-quick speculation to more medium to long-term investment.
Green bases his opinion on most of the leading cryptocurrencies settling on a less volatile value plateau in recent weeks, after months of soaring prices and spectacular falls.
“There is a seismic shift taking place with cryptocurrency investments,2 said Green, whose company launched digital currency exchange app deVere Crypto earlier in the year.
Price corrections
“Investor sentiment appears to have considerably changed in the first quarter of 2018. Towards the end of last year, crypto values went too high, too fast – and, of course, it was unsustainable. At the time I urged caution, saying an asset that goes almost vertically up should typically raise alarm bells for investors.”
“Arguably, even before the frenzied peak in December, when the price of one Bitcoin reached an all-time high of more than $19,000, the market was beginning to become frothy and overheated.
“But since then, in this first quarter, there’s been a serious price correction of most major cryptocurrencies.
“It has been this correction that’s been mainly responsible for an evolution in investor attitude. I believe that now most investors do not view cryptocurrencies to make a fast buck, as perhaps previously many more might have done. Rather, they are now investing in Bitcoin, Ethereum, Ripple, Dash and Litecoin, amongst others, as they can see the core value over a longer time horizon.
“regulation of the cryptocurrency sector is now inevitable”
Technology not speculation
“Our experience is people are investing in crypto primarily because they understand and value the need and demand for digital currencies in an increasingly digital age.
“In addition, there’s a surge in public awareness that blockchain, the technology that underpins the likes of Bitcoin, is the world’s next major disruptive technology.
“Plus, there is a growing sense, especially since the recent G20 summit, that regulation of the cryptocurrency sector is now inevitable – and this, along with growing acceptance in the business and finance community, is giving today’s investors more long-term horizon confidence.”
The key to the market, says Green, is digital currency values are from all-time highs, but investors are still attracted to them, which underscores that cryptocurrency is increasingly becoming a mainstream asset.
