- Crypto discussions can be challenging, especially with sceptics at family gatherings, but Pav Hundal and Ted Coaldrake have a few suggestions.
- The Swyftx analysts offer insights on crypto’s value, emphasising its speculative nature but significant potential.
- They highlight Bitcoin for its scarcity and as a store of value, potentially outlasting other cryptocurrencies.
For anyone holding crypto, the following scenario probably sounds all too familiar. Imagine you’re at a family event, like Christmas or the birthday of one of your beloved but utterly crypto-sceptic relatives and the topic comes up:
“Are you still buying that shiny internet money?” You might get asked, or something along that line. It’s an experience those with “the internet money” – aka the pet rock as Jamie Dimon called it – in their portfolio have probably still way too often.
Related: After Fresh All-Time High, Bitcoin Eyes $77K as US Fed Lowers Interest Rates
By the way, that pet-rock comment may be a thing of the past, as it seems JP Morgan may have quietly changed its stance on the sector.
Value a Philosophical Question, Says Analyst
Anyway, back to our awkward moments of trying to explain to those sceptics what the value of crypto is, those are still very real issues in 2024.
But fear not, the Swyftx Lead Analyst and Head of Content, who are also hosts of a popular Aussie podcast, have a few tricks up their sleeves.
In response to a listener’s query about the value of crypto, Tapping Into Crypto hosts Pav Hundal and Ted Coaldrake share insightful elevator pitches on the intrinsic value of cryptocurrency to help navigate discussions during the holiday season.
Pav notes that it’s not actually easy to wrap your head around what value is, because it comes down to a philosophical dilemma. Value is often subjective, varying significantly depending on individual perspectives, cultural influences, economic principles and personal priorities.
But Pav thinks in any case crypto overall is a “highly speculative, growth asset class”.
He also highlights that every cycle there’s a new trend with very few assets keeping their value, apart from Bitcoin and stablecoins.
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Every cycle, every four years, we see a new flavour of that period. There’s very little staying power outside of Bitcoin.
Pav Hundal, Swyftx Lead AnalystBitcoin a Store of Value That’s Easier to Move Around
Apart from DeFi, banks and other large players adopting blockchain tech, it’s not always easy to figure out which individual tokens will hold long-term value. And while even Ethereum could be replaced potentially, Bitcoin stands out for its limited supply and its accessibility – and of course as a store of value.
Think about a million dollars in Bitcoin versus holding a million of dollars in gold […] it’s going to be a lot easier to handle a million dollars’ worth of Bitcoin digitally than a million [dollars] of gold physically.
Pav Hundal, Swyftx Lead AnalystTed agrees saying Bitcoin has several important factors going for it: scarcity, similar to gold, and the utility of fiat currency. It also solves the issue of inflation and aggressive money printing.
Ultimately Bitcoin and to some degree other crypto assets can be part of a balanced portfolio; although potentially much more volatile.
It’s all about diversification, if you’ve got a strong portfolio, including real estate, stocks, ETFs, commodities, all those, then why not allocate a little bit to crypto.
Ted Coaldrake, Swyftx Content and SEO LeadRelated: Detroit to Accept Crypto for Tax Payments, Becoming Largest US City to Adopt Digital Currency
Of course, Ted doesn’t suggest putting all your eggs in one basket, but as Pav says, parking your eggs, sorry, dollars, in cash notes or a bank account is probably not the greatest idea, from a growth perspective.
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