Cryptos Gaining Traction Among Investors
Feb 21, 2018
Cryptocurrencies are often a polarizing topic, investors either champion them for their wealth creation potential or despise them for their perceived worthlessness. It would seem, however, that many established investors are gradually concluding that the market for cryptos is sustainable in the long run. Investors such as Matt Hougan, an experienced former ETF trader highlighted in Camilla Russo’s piece “ETF Veteran Goes Crypto, Predicting Multitrillion-Dollar Market”, are starting to realize the opportunity for significant returns.
When ETFs first entered the equity market, they were slow to gain traction. As they have increased in legitimacy and proven to be worthwhile investments, they have forever altered the investment landscape. ETFs started out as novel idea, and since have become woven into the fabric of global markets. It is quite possible, and a growing number of investors would say plausible, that cryptocurrencies will follow a similar pattern. In the past year alone, cryptocurrency markets have expanded by a multiple of 25 reaching a total market capitalization of $500 billion. It would appear as though investors are recognizing the prospect that cryptos represent.
Much like the early days of ETF trading, significant skepticism still exists regarding the long-term suitability of cryptocurrencies. They are highly volatile, and difficult for the average investor to properly evaluate. Progress has been made these in these areas, however, and traders are becoming increasingly adept at using contemporary valuation methods to price cryptos. While hesitancy with cryptos is understandable due to their complex nature, their ability to draw veteran investors should be taken as a positive indication.
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