Andreessen Horowitz, one of US leading venture capital firms, proclaimed: this is the “golden era” for cryptocurrencies and we’re pumping $4.5 billion to invest in crypto related businesses.
“Bitcoin and any cryptocurrency at this point has not really established itself as a credible institutional investment,” Scott Minerd, Guggenheim Partners’ chief investment officer, positing that BTC could fall to $8,000, cutting down his February prediction of $600,000. BTC is trading at sub-$29,000 today.
If BTC is a currency [means of value exchange], it has to demonstrate that it can also be a store of value, even in the short-term. But where it is an investment asset, it needs to show that it can outperform or compete at par with other asset classes to be worth the trouble. Today, bitcoin is unperforming as a “currency” and as an “investment asset”.
Tekedia Mini-MBA edition 14 (June 3 – Sept 2, 2024) begins registrations; get massive discounts with early registration here.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
Your hope and unbounded optimistic exuberance is not a strategy. Shine your eyes.
Bitcoin hit its peak of $69,000 in November. It’s lost more than half its value since then as investors have pulled out of riskier assets in the face of rising interest rates.
Despite the crash, there were several panels about cryptocurrencies and digital money at Davos this year, not to mention a spate of crypto-linked vendors along the town’s famed promenade. But establishment voices at the summit didn’t waste any time disparaging the web3 crowd.
“Bitcoin may be called a coin but it’s not money,” said Kristalina Georgieva, managing director of the International Monetary Fund, on Day One of the event. “It’s not a stable store of value.”
---
Register for Tekedia Mini-MBA (Jun 3 - Sep 2, 2024), and join Prof Ndubuisi Ekekwe and our global faculty; click here.
Those who have plenty dollars to throw around should bring it to this corner, storing and moving coins around obviously cannot be described as a new economic prosperity model. We need more of things that are productive on themselves, not swapping numbers across platforms.