The global crypto market cap is $ with a 24-hour volume of $. The price of Bitcoin is $29,211.97 and BTC market dominance is %. The price of Ethereum is $1,677.77 and ETH market dominance is %. The best performing cryptoasset sector is Cannabis, which gained 6%.
Welcome Bonus: Sign Up & Get Up to $150 in BTC
Long-term investments in the blockchain, smart contracts, and the companies that use these technologies will eventually pay off, says Taimur Hyat.
Cover art/illustration via CryptoSlate
Investing in crypto does not necessarily have to involve buying digital assets, Taimur Hyat, the COO of PGIM, told Bloomberg.
According to Hyat, who oversees operations at the $1.4 billion asset management firm, investors should turn their attention to the companies helping build the infrastructure that powers cryptocurrencies.
Although he admitted speculative crypto traders might recognize quick profits at the moment, Hyat does not believe they will continue to turn profits in the long run. Moreover, he noted that cryptos are correlated to equities and do not help diversify investment portfolios.
The PGIM executive continued:
There’s a bit of a misconception that if you believe in the crypto ecosystem, you have to invest in a cryptocurrency. We do see value in some of the incidental innovation that’s happened in the creation of these currencies, where you don’t need to go into the currency itself.
Hyat advocated for investments in blockchain technologies, particularly private, permissionless blockchains. Additionally, he believes investing in smart contracts and companies that use them will eventually pay off.
At the moment, exchange-traded funds (ETFs) that track the stocks of blockchain companies are performing poorly. For instance, the Global X Blockchain ETF (BKCH) has lost 66.11% of its value since the start of the year. In comparison, Bitcoin (BTC), the largest crypto by capitalization, has plunged 34.93% year to date.
Apart from the blockchain and smart contracts, Hyat thinks the metaverse has vast potential. However, he believes investments in the metaverse are only for investors with a long-term outlook because injecting funds into space at the moment will result in massive losses in the short term.
According to Hyat, the metaverse is currently like the pre-internet ages. As time goes by, he believes the virtual world will see a lot of losers and a couple of users. While the winners are currently unknown, Hyat believes the space has significant value creation opportunities.
Hyat’s investment advice comes as the metaverse continues gaining popularity. As of March 2022, metaverse awareness had more than doubled, according to data from Wunderman Thompson Intelligence. Although surveyed consumers voiced concerns over their privacy and children’s safety, they admitted that the metaverse is the future.
Jinia is a fintech writer based in Stockholm, Sweden. With years of experience, she has written about cryptocurrency and blockchain for renowned publications such as Cointelegraph, CoinMarketCap, Bitcoinist, Invezz, etc.
Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.
Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.
Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
Bitcoin is a consensus network that enables a new payment system and completely digital money. Learn more
Got a story tip? Email [email protected]
Disclaimer: By using this website, you agree to our Terms and Conditions and Privacy Policy. CryptoSlate has no affiliation or relationship with any coin, business, project or event unless explicitly stated otherwise. CryptoSlate is only an informational website that provides news about coins, blockchain companies, blockchain products and blockchain events. None of the information you read on CryptoSlate should be taken as investment advice. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own diligence before making any investment decisions. CryptoSlate is not accountable, directly or indirectly, for any damage or loss incurred, alleged or otherwise, in connection to the use or reliance of any content you read on the site.
© 2022 CryptoSlate. All rights reserved. Terms | Privacy

Please add [email protected] to your email whitelist.
Stay connected via

source

Write A Comment

Your article is loading
Exit mobile version