Analyst Chooses Bitcoin Over Other Cryptos

Rate this post
Analyst Chooses Bitcoin Over Other Cryptos

Choosing a single cryptocurrency from the multitude of coins available on the market today might be tough for investors.

Susquehanna International Group analyst Bart Smith advises investing in bitcoin. Smith, who featured on CNBC Fast Money, chose bitcoin because it is still “functionally used.” “If you want to acquire an asset that you can really use today and that others are effectively utilizing,” he says. Bitcoin, he claims, is the Internet’s money. (See also: The Cryptocurrency Markets’ Black Swan Risk.)

Aside from its functional purpose, bitcoin has become a leading indicator of cryptocurrency markets. Its price trajectory has influenced cryptocurrency markets. It is the cryptocurrency that sparked a digital payment revolution, and its success has resulted in a rise of other currencies on the market. Today, over 1500 cryptocurrencies are exchanged, with market capitalizations totaling hundreds of billions of dollars.

An Enthusiasm Tempered With Practical Considerations

Despite his excitement for bitcoin, Smith believes it will be some time before its applications result in concrete acceptance and investment rewards. Bitcoin futures, he claims, have gotten people “very enthused about all these different tokens and use cases.” “And all of a sudden, when people became enthused about them, you saw all of these tiny tokens significantly outperform.” “We got a little ahead of ourselves,” he said. (For further information, see How Are Bitcoin Futures Priced?)

Smith may be correct. Bitcoin futures have mostly lagged the cryptocurrency sector, with volumes remaining relatively modest. Institutional investors have mostly avoided the futures market, and clearing agencies such as Goldman Sachs are demanding a fee to book contracts.

  Crypto ATM

He is likewise wary of technology breakthroughs yielding short-term advantages in bitcoin markets. “If you look at these other use cases, smart contracts, lightning networks, or other technical breakthroughs, I believe people are realizing that such things are really tough and aren’t arriving anytime soon,” he added.

Investing in cryptocurrencies and other Initial Coin Offerings (“ICOs”) is very dangerous and speculative, and this article is not a suggestion by Investopedia or the author to do so. Because every person’s circumstance is different, a knowledgeable specialist should always be contacted before making any financial choices. Investopedia makes no guarantees or warranties about the accuracy or timeliness of the information provided on this site.

You are looking for information, articles, knowledge about the topic Analyst Chooses Bitcoin Over Other Cryptos on internet, you do not find the information you need! Here are the best content compiled and compiled by the team, along with other related topics such as: Cryptocurrency.

Similar Posts