Quantum Fintech Group founder and managing partner Harry Yeh believes that it is critical for investors to add cryptocurrencies to their portfolios. Yeh said this during an interview on December 27 while discussing general investor sentiment on cryptocurrencies as an asset class. He also spoke about the impact that central bank activity affects the infant industry and his outlook for the sector.
In the interview , Yeh pointed out that if he didn’t stay in crypto, the multiple times people told him the sector would fail, he wouldn’t be where he is today. Yeh added that he got into crypto in 2013 when Bitcoin (BTC / USD) was changing hands at $ 60.00 (£ 44.60), and the coin is currently trading above $ 48,000.00 (£ 35,676.00). To this end, he believes that the crypto space will continue to grow.
According to him, the crypto space has passed the stage where investors question whether it will stick around. Instead, he believes investors are thinking about their blockchain and crypto strategies right now.
Speaking about the impact central banks would have on cryptocurrencies, Yeh said that BTC and other cryptocurrencies serve as a hedge against inflation. As such, its value increases when central banks print more money. While this is true, he said that he likes to think of this situation as a reverse, in which the value of BTC remains constant as the value of the dollar plummets.
BTC is not like other risk assets, says Harry Yeh
When asked what sets BTC apart from other risk assets, Yeh said that it is unique. Additionally, he noted that risk assets, such as stocks in companies like Tesla and Apple, have trillion-dollar market caps right now. Yeh added that the crypto industry has a market capitalization of more than $ 2.00 trillion (£ 1.49 trillion).
Despite the rising cost of living, Yeh acknowledged that risky assets have increased in value. To this end, he suggested that investors keep part of their portfolio in cryptocurrencies because they can work for them.
He went on to highlight the advantages of blockchain and cryptocurrencies, saying that an investor doesn’t need to have a lot of money for their initial investment. He added that buying stocks is a daunting task for many because it takes around $ 10,000.00 (£ 7,431.25) to get started. On the other hand, Yeh recalls that he started his crypto journey with just $ 500.00 (£ 371.56).
Although he believes that cryptocurrencies like BTC serve as inflation hedges, Yeh said that the primary use case for digital assets is payments and remittances. He said that traditional banking systems are limited, but that cryptocurrencies are available 24 hours a day, 7 days a week, 365 days a year.
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