Cryptocurrencies have been arriving in the mainstream at the latest since the advance of PayPal to offer its customers payment by Bitcoin. Professional investors are also increasingly dedicating themselves to the opportunities offered by this new asset class. Martin Schmidt from Postera Capital, who offers the crypto fund Crypto I, now describes his view of things to the SHAREHOLDER.
Which investors are responsible for the current upswing?
During the Bitcoin hype in 2017, private individuals in particular dominated the crypto markets. That has changed: now, significantly more professional investors are involved. There it is not about quick profits, here investors consciously tie up their capital for years, if not decades. Regular surveys also show that interest on the part of many institutional investors is not only high, but is also growing steadily.
As is so often the case, German investors tend to be overly cautious, but word is slowly getting around even in this country that crypto assets should have a place in mixed portfolios. Due to the higher proportion of long-term oriented professional investors, the price development in the crypto market is also stabilizing. Most recently, Bitcoin’s volatility was even lower than that of tech stocks like Tesla.
Volatility is a measure of the risk of an investment. Is the Bitcoin really ahead of tech names like Tesla?
The volatility of Tesla is currently around 80, that of Bitcoin around 40 (250-day volatility). For example, the volatility of Amazon, which is also around 40, is comparable. These are of course snapshots by the Bitcoin Trader software. With crypto assets it can be observed that the volatility slowly but steadily decreases as the asset class matures.
Will Deutsche Bank, Commerzbank and Co also introduce Bitcoin like PayPal?
Although Deutsche Bank has already published some positive research reports on Bitcoin, nothing is known about their own crypto offer from Deutsche Bank and Commerzbank. But smaller banks are rushing ahead here, for example Hauck & Aufhäuser, Hamburg’s Sutor Bank and Volksbank Mittweida are currently launching their own crypto services.
Is there a fear of a ban?
A ban is not to be feared – at least in the western world. In Germany, BaFin took a position on Bitcoin Trading as early as 2013 and determined that the use of Bitcoin is legal. A ban is also not an issue in the regulatory projects that are currently taking place at European level. However, service providers or issuers who offer services relating to all aspects of crypto assets are regulated, similar to what is the case for “traditional” financial service providers.
Do you see that big investors and millionaires are switching from cash to Bitcoin?
This is a trend that is just beginning. In the USA, for example, the fund company Fidelity is making a big entry into the crypto business, and some prominent investors have announced that they are adding crypto assets to their portfolio. Against the background of the current glut of money, large investors are looking for inflation-proof investments; in addition to real estate and gold, Bitcoin and other crypto assets are ideal for this.
Bitcoin stocks make a comeback
The SHAREHOLDER Hot Stock Report wrote five years ago: “We will experience the second wave of the crypto currency Bitcoin – as a safe haven that can be reached quickly digitally.” Bitcoin was quoted at 350 dollars. Today at $ 16,100. In the new issue, we again go into more detail about an exciting blockchain start-up. Take part: Simply activate here for all details, interviews and the successful depot 2030.