There are hundreds of different financial assets across several categories that we trade: commodities, cryptoassets, currencies, indices and ETFs. Each asset class has its own characteristics, and can be traded using a variety of investment strategies. However, the lion share of our portfolio consists of cryptocurrencies. This is where the real profit is made.
First, cryptocurrencies are borderless, making them perfectly suited to an ever globalized world of commerce, trade, and people. Second, they are digital, making them perfectly suited for the increasing digitalization of our world, which is often called the fourth industrial revolution. Third, they provide solutions for real-life issues, including making international remittances more efficient, and help bank the world’s estimated two billion ‘unbanked’ population.
Fourth, demographics are on the side of cryptocurrencies as younger people are more likely to embrace them than older generations. And fifth, institutional investors are coming off the sidelines and moving into cryptocurrencies, bringing their institutional capital and institutional expertise to the crypto market.
There is growing, universal acceptance that cryptocurrencies are the future of money – and the future is now. High net worth individuals are not prepared to miss out on this and are rebalancing their investment portfolios towards these digital assets. Bitcoin, the world’s dominant cryptocurrency, continues to register new highs, reinforcing the view put forward by its recent upswing towards bullish territory. Once this confidence is in place, the sky is the limit for cryptocurrencies, which are increasingly accepted by both retail and institutional investors as the future of money.