Cryptocurrencies Mass Adoption as an Asset Class

Dear Reader,

Cryptocurrencies are becoming more and more mainstream as an asset class.

In their nature cryptocurrencies issued by corporations are similar to stocks in that they hinge on the company's prospects. However, they also can function as a means of payment as Bitcoin, Ethereum and Facebook's Libra. So cryptocurrencies are an interesting hybrid between money and common stocks.

Cryptocurrencies function almost like stocks, but they depend on the general public accepting them as money. However, stocks are also sort of money. Common stocks, especially liquid large developed markets stocks, function as a unit of account, store of value and means of exchange, which are the main traits of money, actually the definition of money.

So cryptocurrencies are leveraged stocks bets essentially. Leveraged, because cryptocurrencies do not participate in the capital structure of the firm and are not part of the bankruptcy estate of the firm.

Global central banks are studying and experimenting with cryptocurrencies. Bitcoin, Ethereum and Libra are the main independent cryptocurrencies that have the largest chance of mass adoption. Smaller companies' more obscure cryptocurrencies could bring huge windfalls by rising tens or even hundreds of times in value. However, good company analysis has to be executed in order to realize these windfalls from small, less obvious cryptocurrency opportunities.

Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is".

Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.

Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!

Respectfully yours,

Petar Posledovich