Dear Reader,
The European Central Bank is planning to issue a reserve cryptocurrency in 2023. The People's Bank of China already issued a reserve cryptocurrency, which is being tested internally in four major Chinese cities. The Bank of Japan and the Federal Reserve are in advanced planning stage to issue a reserve cryptocurrency.
If global governments, that is global central banks are planning to issue their own cryptocurrencies, the future of cryptocurrencies is undoubtedly bright.
Most cryptocurrencies are akin to stocks and the cryptocurrency market exhibits 80% correlation with the US stock market since the beginning of 2020. With 50% gain Bitcoin is the best performing asset class since the beginning of the year along with technology stocks.
Cryptocurrencies investing is a leverage investing in the stock of the issuer of the cryptocurrency, since cryptocurrencies support certain projects of their issuing entities. That is, when one uses cryptocurrencies eventually issued by central banks, one puts his trust in the central bank and the monetary system at large.
Cryptocurrencies seem like innovative, breakthrough vehicle that build on common stocks' participation in a company's project, but do not participate in the capital structure and are thus much riskier than stocks.
However, the largest cryptocurrencies definitely look undervalued.
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
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