It would be wise to buy some Bitcoin
– Michael Jordaan
Jamie McKane16 June 2019
Cryptocurrencies are likely undervalued at the moment and South African investors should make the digital currencies a small part of their investment portfolio, Michael Jordaan told the Sunday Times.
Jordaan is well known as the founder of Montegray Capital and an investor in a range of startups, including Rain and Bank Zero.
Speaking to the Sunday Times, Jordaan said South Africa has some of the leading blockchain developers in the world and is home to many world-class cryptocurrency startups.
He also said that following the burst of the Bitcoin bubble, cryptocurrencies are probably undervalued as an asset class.
“It would be wise for investors to allocate a small part of their portfolio (even if less than 1%) to cryptoassets,” Jordaan said.
“They only have value because we believe they have value,” he added. “It is therefore difficult to predict where cryptoprices are headed.”
Bitcoin movements
Cryptocurrency is a volatile asset, with the price of tokens including Bitcoin and Ethereum remaining largely speculative until the technology gains widespread adoption.
This doesn’t mean that they cannot pay off as investment however, with Fundstrat and other analysts predicting a boom in the price of Bitcoin and other cryptocurrencies in the near future.
Even if South Africans purchased cryptocurrency in the beginning of 2019, they could have doubled their investment over the course of the year so far.
While smaller cryptocurrencies tend to offer more potential for quick returns, they are often even more volatile than major tokens like Bitcoin and Ethereum.
For this reason, many cryptocurrency investors have purchased Bitcoin, using the world’s biggest cryptocurrency as a refuge until there is less uncertainty in the market.
https://mybroadband.co.za/news..../cryptocurrency/3102
