Columbia Investment Management Company (CIMC), Columbia University’s investment arm, said that cryptocurrencies will not only stay but will have significant impacts in the future.
IMC President and Chief Executive Officer Kim Lew said that cryptocurrencies, even with their meteoric rise, would not stay as a fad, but are set to be part of our daily lives. This view outright dismisses some analysts’ prediction that cryptocurrencies are nothing but a fad and would fade away soon.
Lew, in his interview with Bloomberg Wealth, said that cryptocurrencies have massive and untapped potential when it comes to investments. Even though they are carrying a big risk with them, which is their volatility, she still believes that cryptos would soon surprise the investment community with their potential.
Layers of potentials and opportunities
“There are many different avenues that it can go. There are stablecoins, there’s NFTs… there’s just the blockchain, the different layers ー people are using it for so many different things,” Lew said.
But she admitted that the specific area where cryptos would ultimately innovate is something that she is not sure about.
According to her, with so many variables in the financial world, anything can happen. Predicting cryptocurrencies’ path, she added, is close to impossible.
But the potential that cryptos have is already a guarantee that they will further grow and be widely adopted.
Volatility
Lew recognizes cryptos “Achilles’ heel,” which is their volatility. She said that CIMC is also cautious about cryptos’ risky side.
And as the one who is leading the investment company, Lew said that she is considering every good investment path that the company can take. And even with cryptos’ risks, she said that the company does not completely dismiss cryptocurrencies as an investment option.
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