My Thoughts on Cryptoassets
Since the inception of cryptocurrency in 2009 it has taken on a roller-coaster journey of transformation from a currency to buy drugs to a more than two and a half trillion-dollar market. With the emergence of decentralised applications (Dapps) on infrastructures built using distributed ledger technologies (DLTs), cryptoassets could be the cornerstones of the next technological revolution of decentralisation. Therefore, understanding the crypto asset class is crucial to any investor. Cryptoasset could be a good diversifier and a potential hedge. On the flip side, if it is merely a bubble, one could devise a short position to hedge against it. I will argue that given the various headwinds the asset class faces and widespread speculation by retail investors, Bitcoin is worthless. Although the Ethereum platform offers bright promises, so did countless internet platform companies in the late 1990s. One has to be wary of overvaluation. I will stay away from the crypto space for now. Issues ...