• Wed. Jun 22nd, 2022

Institutions make a 180 degree turn on the outlook for cryptocurrencies

ByHazel R. Lang

Apr 7, 2022

Four of the biggest names in wealth management and banking may have finally realized that cryptocurrencies might be a winning bet after all.

Prior to this year, CEOs such as Jamie Dimon (JPMorgan Chase) and Larry Fink (BlackRock) described Bitcoin as worthless, with no intrinsic value, and “an index of money laundering.” Today, they seem to have taken a totally different approach.

A few months ago, JPMorgan Chase began hiring software engineers to focus on “blockchain collateral tokenization.” And BlackRock – the world’s largest investment company – began to see the need for cryptocurrencies as an alternative transfer of wealth outside of the fiat system after the Russian-Ukrainian conflict. Blackrock also owns a stake of 14.56% in MicroStrategy, which holds over 125,000 Bitcoin (BTC).

And it didn’t stop there.

Earlier this year, Goldman Sachs became the first major US bank to trade crypto over-the-counter, and even Bridgewater Associates, the world’s largest hedge fund, reportedly plans to back an external crypto fund.

Could the days of institutions mocking cryptocurrencies like BTC be coming to an end?

“I think so,” says Brett Hope Robertson, chief investment officer at the crypto investment platform Revix.

“Institutional adoption is happening at an exponential rate as the market and its participants become more sophisticated. Over time, I expect this will lead to a less volatile crypto market.

“Surprisingly, institutional adoption ultimately comes from customers. So, as we see investments in cryptocurrencies and the development of digital asset features, this is what the clients of these institutions are asking for. Despite the opinions expressed by senior institutional officials over the years, we are beginning to see a shift in the way these officials view the use cases, and therefore the power, of decentralized cryptocurrencies.

The recent sanctions imposed on Russia by Western countries are one of the main drivers of this change of vision on cryptocurrencies.

A fundamental design of cryptos and decentralized finance (DeFi) is the ability to bypass gatekeepers such as central banks. Cryptos are intended to be “censorship-resistant”, which means that no one can prevent or disrupt a payment between two consenting parties.

In a letter to BlackRock shareholders, Fink suggested that a “carefully designed, global digital payments system could improve the settlement of international transactions while reducing the risk of money laundering and corruption.” Such a system could also help reduce the costs of cross-border payments.

Hope Robertson argues that we are rapidly entering a world where multiple payment systems, both traditional and crypto-based, will compete and overlap, creating vast new opportunities for accumulating wealth and making payments.

“The great dream of financial inclusion and extending financial services to the masses has not been realized within the traditional financial system,” he says.

“In the crypto space, the technology is already in place. Areas such as Smart contract, Challenge, Payment tokens and Blue boat Cryptocurrencies lay the foundation for a completely decentralized financial system – an alternative way to store and transfer value around the world at a fraction of the cost.

In light of the Russian-Ukrainian situation, institutions are finally realizing the power of such a system, and the crypto market has taken notice.

Over the past 30 days, Revix has posted impressive returns across many cryptocurrency sectors.

Source: Revix

the Revix Smart contract (17.94%), Top 10 (12.22%), Challenge (9.67%) and Payments the bundled offerings (7.3%) all delivered impressive 30-day returns that help bolster the view of many institutions that the cryptocurrency market may well be here to stay after all.

How to Participate in the Crypto Revolution

Revix offers several ways to participate in the crypto revolution.

the Top 10 packs is like the JSE Top 40 or S&P 500 for crypto and provides equal weighted exposure to the top 10 cryptocurrencies that make up over 85% of the crypto market. The most exciting stories in the crypto market will be in the top 10, and as new cryptocurrencies grow in size and prominence, they will likely take their rightful place in the Top 10 Bundle. The bundle is automatically rebalanced monthly to ensure that the weights remain equal.

the payment package offers equal weighted exposure to the top five payments-focused cryptocurrencies that seek to make payments cheaper, faster, and more global. These cryptos include the likes of Bitcoin, Ripple, Bitcoin Cash, Stellar, and Litecoin.

the DeFi Bundle offers market-cap-weighted exposure to the top 10 decentralized finance-focused cryptocurrencies that are revolutionizing the financial system using smart contracts and blockchain technology. These cryptos include Uniswap, Thorchain, Aave, and Curve.

the Set of smart contracts provides equally weighted exposure to the top five smart contract-focused cryptocurrencies, like Ethereum, EOS or Tron, which allow developers to build apps on top of their blockchains, similar to how Apple builds apps. applications on top of its operating system OS.

About Revix

Revix brings simplicity, trust and excellent customer service to investing in cryptocurrencies. Its easy-to-use online platform lets you securely own the world’s best cryptocurrencies with just a few clicks. Revix guides new clients through the sign-up process to their first deposit and first investment. Once set up, most customers manage their own wallet but can access support from the Revix team at any time.

Remember that cryptocurrencies are high risk investments. You should not invest more than you can afford to lose, and before investing please consider your level of experience, your investment objectives and seek independent financial advice if necessary.

This article is intended for informational purposes only. The views expressed are opinions and not facts and should not be construed as investment advice or recommendations. This article is not an offer, or the solicitation of an offer, to buy or sell any cryptocurrency.

To find out more visit www.revix.com.

Brought to you by Revix.

Moneyweb does not endorse any product or service advertised in sponsored articles on our platform.

Source link