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A digital world with no clear regulatory structure is definitely not some palatable adventure that anyone would be happy to delve into. That coupled with the high price volatility – which raises concerns on price manipulation – is the perfect excuse for anyone to avoid the crypto world like a plague.
What is worse? The most prominent cryptocurrency and oldest member of the block has received the worst hit in the ongoing crypto winter: Bitcoin has lost up to 75% of his price value in 2018. This is more like adding a topping to the already brimming fears of institutional investors and other crypto enthusiasts and investors out there.
Stemming from the deterrent factors explained above, it is no wonder that institutional investors among other crypto investors and enthusiasts have since resolved to touching the crypto world with a very long pole. These drawbacks are, to a large extent, responsible for the slow growth rate experienced in the crypto world even after 10 years in the blocks. Who would not steer clear from such oblivious technology?
Be that as it may, a number of crypto analysts, after extensive analysis of the crypto world, have taken turns to advise crypto investors and enthusiasts that steering clear may not be a smart choice. Among such crypto analysts are those of Cambridge Associates, a consultant firm for pensions and endowment, who believe that institutional investors should start steering their boats towards the crypto world.
The analysts state explicitly that they believe it is worth the risk for institutional investors to get involved in the crypto playing field. They advised to keep the eyes focused on the long-term goal, not the current challenges. Noting the drawbacks of cryptocurrencies, including the tendency of being a hideout for cybercriminals and other financial criminals to finance illicit trade, they strongly advised that it is worth the risk in the long run.
However, they also quickly added that crypto investors – whether big or small – should be forearmed before delving into the crypto pool. And by that, the analysts explain that investors should take the time to learn about the space, do not be in a hurry, and be sure to take all the time needed to equip themselves before plunging into the crypto world. Furthermore, the analysts of Cambridge Associates urged investors to explore the varied investment possibilities, ranging from investing in illiquid venture capital funds to buying virtual tokens on cryptocurrency exchanges.
In conclusion, the analysts added that despite the alarming rate of decline of the prices of cryptocurrencies and uncertainties that lurk around the future of this space, they still see a developing industry and not a faltering one.
Having institutional investors enter this space en masse will be a big win for the crypto world as it both strengthens the space as well as brings better credibility to the market.