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What the Crypto?
Last week Bitcoin hit a price of $15,000. Bitcoin launched in 2009, but in the past year has DOUBLED in value.
Digital assets, such as Bitcoin, are emerging alternative asset classes that have recently had unprecedented growth.
But why are digital assets still such a mystery?
Crypto is a form of digital scarcity that is not centralized. There are currently 6,955 different types of cryptocurrencies.
These are not a physical currency, just balances kept on a public ledger.
Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and is operated by a decentralized authority, unlike government-issued currencies.
Investopedia
Depending on the utility use and credibility of that coin some coins are treated as securities and some are treated as commodities. Bitcoin, Etherium, and Litecoin are all considered commodities.
Crypto Funds!!
Cryptocurrency is new and changing constantly. There are individual traders of currencies, but crypto FUNDING has been on the rise lately.
The total market cap of all crypto currencies is $320 Billion. A lot of this value is held by retail investors, but a large portion is also held by cryptocurrency investment funds…
You might wonder why investors are turning to crypto funds…
“But why would you want to hand over your crypto-assets to portfolio managers and traders in the first place?”
Investors want to be involved in the growing crypto industry and not miss out on the returns, so they turn to knowledgeable crypto funds!
“More and more talent from the traditional hedge fund world is moving into digital assets“
To understand crypto FUNDS just think hedge funds. They’re essentially just a hedge fund that invests only in crypto currency, with the occasional investment into blockchain or crypto-related startups.
Big names in Crypto Fund World:
The world is still trying to understand how these assets should be regulated. The SEC has recently been releasing regulations concerning crypto funds, this is a new investing terrain for everyone!
However, Bill Gates has said,
“The future of money is digital currency”
And I’m with him!
Crypto funding is a space to be aware of. There are so many options out there, so don’t limit yourself!
TokenBox is a great example to look into if you need more information!
If you have any further questions or clarifications, be sure to contact me here.
Thanks for the read!
DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the authors.
