The stock markets all around the world are entering a bear market. Many think that cryptocurrencies could become the best performing asset class during 2019.
Cryptocurrencies might outperform other markets next year
Travis Kling is a self-proclaimed ex-equities portfolio manager. He got obsessed with cryptocurrencies and is now climbing the ladder of the Japanese cryptocurrency asset management firm Ikigai. Kling believes that cryptocurrencies will be a great asset class to invest in during 2019. He Tweeted:
“Crypto has never existed during a bear market in traditional assets. BTC has birthed at the very beginning of the largest monetary experiment ever- globally coordinated Quantitive Easing (QE). Ending QE is causing pain There is a significant chance Crypto is the best performing asset class in 2019.”
During a recent article, many crypto industry experts share Kling’s sentiment about cryptocurrencies becoming the best performing asset class in 2019. They argue that developers have improved the infrastructure of cryptocurrencies and blockchain during 2018, while the market has fallen. The outlook is better than ever.
It is very interesting that cryptocurrencies are on the rise while the stock market is crumbling and is close to entering a bear market.
Cryptocurrencies on the rise in a damaged financial system
Kling stated that Nakamoto created bitcoin during a time when the world coordinated quantitative easing. It means lowering interest rates and buying trillions of dollars’ worth of government bonds and mortgage-backed securities. The move potentially saved the U.S from major depression. Other global economies followed suit in buying bonds and increasing market liquidity to fuel economic growth.
Bloomberg revealed in October 2018 that the worlds largest banks have started to decline their bond holdings. The U.S. is leading the way, and they are rising interest rates as well to allowing economies to operate by themselves without intervention from central banks. Cryptocurrencies and blockchain emerged just after the last bear market and have not been “active” during a recession. Kling argues that the instability in the stock market has affected the cryptocurrency market. However, he thinks that cryptocurrencies might find a bottom before the stock market does.
“It would make complete sense to me that crypto would bottom out months before traditional asset classes.”
We might soon all have to pay the price. The stock market is falling dramatically, and Nasdaq is flirting with bear-market type conditions. It is the first time since 2009. If the stock market keeps on falling, investors will look into other asset classes. During other recessions, gold and silver have been the place investors turned to. We might already see the tide turn since $30 billion has returned to the crypto market during the past weeks, according to Coinmarketcap.com. Could cryptocurrencies become such an asset class?
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Dennis Sahlström has been trading and investing since 2012 and has for the last two years been consistently profitable. He has been in the crypto- and blockchain space since the middle of 2017 and realized its potential for our world, not least how it is transforming the society we live in. He has now created an education platform, together with the wealth coach Marcus the Maria. They teach regular people how to invest and trade in the cryptocurrency market with proven strategies. If you want to learn more and feel like its time to get into this new asset class, download our free book and register to the next live training to get your future in cryptocurrencies started.