Amid market meltdown, analyst says cryptocurrencies show a lot of promise

Jim Bianco, a market analyst and president of qualitative and quantitative macro investment analysis service provider Bianco Research, L.L.C., recently appeared on CNBC’s “Trading Nation” and talked about the crypto economy.

During the show, the analyst said crypto investors have to deal with some busts and booms along the way, emphasizing they should “have to stomach through much more of what we saw in the last week coming in the next several months or year so,” referring to the massive wipe-out the market experienced.

Bianco is a believer in digital currencies and has been putting investments in them, collecting a basket of crypto assets. However, the company president clarified he doesn’t own bitcoin as he believes “coins like ethereum are going to be a lot higher way down the road.”

Cryptocurrencies show a lot of promise

Bianco also told hosts of the CNBC show that cryptocurrencies have a lot of promise and that is what’s really important despite all the FUD that’s been circulating for the past days.

At the same time, he cautioned that crypto-assets can easily fall 50-70% in value because its technology is relatively new but still believes that after they complete the “adoption phase,” they will be a mainstay in the global economy.

He explained after that and volatility slows down, there will be lesser risks but also lesser rewards.

A fix for crypto space

In the concluding parts of his interview, Bianco said the crypto space certainly needs a new fix and that is to get higher financial market volatility in the stock market like the VIX index. Such is believed to reinforce the cryptocurrency world in a very significant way.

He also noted that unlike three or four years ago, crypto assets are now showing correlations to other risk assets such as equities, believing that being exposed to new assets is vital for the crypto drive.

 

Image courtesy of Cointelegraph News/YouTube

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