facebookDo you think it is good to just see crypto as speculative play and to keep the position small (1-5%), just in case it reaches 300k USD per coin one day? - Seedly

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Anonymous

25 Nov 2020

βˆ™

Cryptocurrency

Do you think it is good to just see crypto as speculative play and to keep the position small (1-5%), just in case it reaches 300k USD per coin one day?

Since the Bitcoin supply is limited at 21 mn. The view is that due to its scarcity, there will be an innate value to it.

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Justin Mok

25 Nov 2020

Bachelor of Business Management at Singapore Management University

Hi there!

I do not see crypto as a speculative play, but in fact, a considerable investment thesis for the long-term. I have yet to deep dive into crypto/blockchain, but recent developments in the financial industry suggests that there has been a shifting sentiment towards the technology revolving cryptocurrencies (especially Bitcoin) and blockchain.

E.g. Paypal and Square recently bought a bunch of bitcoin for their own wallet/exchange. There are some Wall St. banks that are also snapping up a fair share of Bitcoin

Personally, I see a viable use-case scenario for the technology, especially eliminating intermediaries for the transfer of wealth cross-border. I think there are some countries that are already using it, especially those that has weak monetary policies/hyperinflation.

I am quite interested to see how the space plays out, whether if the coming years are more driven by retail speculation (like in in 2016/17), or more of institutional and smart money pouring into the crypto space. My guess would be the latter.

1-5% seems okay if you are also into broad equities, and given your current conviction level. I would recommend reading up more on the technology, and adjust your position size as you gather more information - just a few Google searches, and you are presented with a sea of knowledge. All the best!

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