For Maurice Muro, CEO of crypto investment fund operator Hodl, there is “not much left” to invest in now. With rising inflation, bonds are not moving, real estate is getting more difficult, but there is one asset class that is (surprisingly) getting the attention of fund managers – cryptocurrencies. During the European Blockchain Conference in Barcelona this week, Cointelegraph editor Aaron Wood sat down with Muro, who gave his insights into the approach to the digital asset investment landscape.
“It’s like the late ’90s with the Internet bubble, so you’re still early in the space,” Murrow said. “A very solid use case for crypto is becoming apparent in the gaming industry, where people invest the time you can earn from it, and it’s all organized by blockchain.” He reiterated that now only 21 million bitcoins would exist and that there would be no more printing. Therefore, pointing to hyperinflation in Turkey and Argentina, Muro said that central banks cannot print more digital currency. “So that, to me, makes for a very safe hedge. 30% volatility in asset prices can be bad, but not if you lose 70% on the purchasing power of your local currency every year.”
When asked about his advice to new crypto investors, Mureo explained for institutional investors, who are usually risk averse regarding the safety of their capital, that anywhere between 1% to 5% is an ideal risk target. Will happen. However, he suggested that retail investors, especially those who are young, could easily go beyond that target as there would be enough future income to supplement the portfolio. Currently, digital assets account for at least 0.12% of all financial assets outstanding. “So if it goes from 2% to 4%, which is more than 10x from now, it means you have a mature model. If you multiply the original number by 12, you are at the gold level. Huh .”
Of course, institutional investors usually have access to more in-depth sources of information. But when asked what retail investors can do to improve their research, Muro said:
“First of all, on-chain analysis is very important, because you can see who actually owns the coins. Let’s say you see that 90% of the coins are owned by three individuals who are associated with the project, So you know it’s a little scam.”
He continued: “There are many companies like ours, where they just write reports and put them on the website. Other elements that Murrow recommends investors research are use cases, such as opportunities, social media presence, And inquire about its community.” It can be a challenge, but it’s akin to the early days of the Internet. Ultimately, the market will oust those without meaningful traction and are using crypto only as a bandwagon.”
