There is no rational way to value a new technology. There is a great deal of excitement about ease, cost and trust of payments using crypto. At the same time, the massive flood of global liquidity is doing 2 things:
- making lots of cheap capital available to fund development of the crypto space
- feeding into the idea that 'fiat', or government, money will lose value.
The way I personally view crypto is that there is a good chance it will succeed as a means of securing low cost, rapid, and secure transactions. I have taken a small position relative to my net worth, and don't bother much with daily movements.
I have no doubt for the underlying technology for crypto but I can’t get my head around so many cryptos in the market. Anyone can create a new coin with sufficient tech background. How do we evaluate which of these can and should be used as a form of acceptable payment.
Also when one invests in any of the coins what is he investing in ? The expectation that that coin will be used as a form of payment in future as against todays fiat ?
This is true of any new technology or product: hundreds join the bandwagon, and only a few prosper. I am investing in a mix of the 4 or 5 most widely adopted.
I am betting on increased adoption of crypto in payments, contract enforcement, FX remittance etc., where it will be morr competitive than fiat; I am not betting that fiat will wither away.
Excellent piece , Mo... Very erudite and crisp
Thanks, Rajesh.
Thank you for sharing your thoughts with us.
Its a great pleasure to read and listen to you Sir.
Many thanks.
Great read
Thanks, coz.
Would love to hear your views on growth of NFTs as an investment option. Thanks!
Basab,
I'm still trying to understand the NFT landscape. Can't comment as yet.
Crypto has gone berserk because of retail and institutional investors. Any thoughts on this ?
There is no rational way to value a new technology. There is a great deal of excitement about ease, cost and trust of payments using crypto. At the same time, the massive flood of global liquidity is doing 2 things:
- making lots of cheap capital available to fund development of the crypto space
- feeding into the idea that 'fiat', or government, money will lose value.
The way I personally view crypto is that there is a good chance it will succeed as a means of securing low cost, rapid, and secure transactions. I have taken a small position relative to my net worth, and don't bother much with daily movements.
I have no doubt for the underlying technology for crypto but I can’t get my head around so many cryptos in the market. Anyone can create a new coin with sufficient tech background. How do we evaluate which of these can and should be used as a form of acceptable payment.
Also when one invests in any of the coins what is he investing in ? The expectation that that coin will be used as a form of payment in future as against todays fiat ?
Idris
This is true of any new technology or product: hundreds join the bandwagon, and only a few prosper. I am investing in a mix of the 4 or 5 most widely adopted.
I am betting on increased adoption of crypto in payments, contract enforcement, FX remittance etc., where it will be morr competitive than fiat; I am not betting that fiat will wither away.
Thanks for writing this
I was missing your simple and easy to understand column in Outlook money!
Thanks.
I wont be giving stock tips here, though!