Cryptocurrencies as Investment. An Analysis

Dear Reader,

Since their introduction in 2015 cryptocurrencies are becoming ever more popular investment vehicle. Now even large financial institutions like asset managers and hedge funds are investing in Bitcoin and other cryptocurrencies, in addition to the already present individual investors.

Cryptocurrencies issued by companies are basically a leveraged play on a company's projects. Bitcoin is a bit different, since it is basically the founding type of ecosystem and a flagship for cryptocurrencies.

One problem with investing in cryptocurrencies is that cryptocurrencies due to not participating in the companies' capital structure are very volatile. One can make multiples of the initial investment, but loose more than 80 % if the investor has a short-term investment horizon and enters at a short term cryptocurrency price peak.

Nonetheless, all points to the fact that cryptocurrencies are here to stay. Bitcoin saves time, money and effort for people. Bitcoin is still far off from becoming real money due mainly to its unstable price which prevents Bitcoin attaining the store of value function of money. That said, however, Bitcoin has proved a great investment since 2015. Bitcoin and other cryptocurrencies' prices hinge on their adoption. Here at play is people psychology, but people like new things, they like technology, they like saving time, money and effort and enjoy success. All attributes that cryptocurrencies seem to provide, at least at present.

Investing in Bitcoin and cryptocurrencies has its pitfalls, but also can provide huge windfalls. 

Agile risk management is key.

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