Thought leadership: is investing in cyber/crypto still wise and attractive in today’s market?
In today’s fast-paced digital economy, the world of cyber and crypto is constantly evolving. As investors navigate this ever-changing landscape, it’s important to stay informed about the latest trends and insights. In this exclusive article, we have interviewed 20+ experts and leaders in the cyber/crypto market, to provide you with a comprehensive view of the current state of the market and whether investing in cyber and crypto is still a wise and attractive choice. From the impact of regulatory changes to the potential for future growth, these experts provide valuable perspective on the opportunities and challenges facing investors in this dynamic field. Read on to learn more about their thoughts on the current and future state of the cyber and crypto market.
The question we asked our interviewees is — is investing in cyber/crypto still wise and attractive in today’s market?
Interviewee: David Cohen
Company: Flower Station
Answer: Due to the current crypto winter, I believe it is wise if we hold off on investing in cyber/crypto and wait for the market to become stable. High inflation and Fed interest rate increases act as a one-two blow on the stock and cryptocurrency markets. When interest rates increase, risky assets like stocks and cryptocurrencies suffer. Bitcoin has additional space to fall if the effects of FTX’s bankruptcy continue to spread.
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Interviewee: Julian Goldie
Company: Goldie Agency
Answer: Investing in cybersecurity and cryptocurrency can be a wise and attractive move in today’s market, as both industries are growing rapidly and have the potential to provide significant returns.
In the case of cybersecurity, the need for companies and governments to protect their networks and data from cyberattacks has only increased in recent years, as the number of cyber threats continues to grow. This has led to a significant increase in demand for cybersecurity products and services, making it an attractive area for investment.
As for cryptocurrency, it has been gaining mainstream acceptance and is becoming more widely used as an alternative to traditional forms of money. Bitcoin, the most well-known cryptocurrency, has seen significant growth in value over the past few years, and many other cryptocurrencies have also seen significant gains. Additionally, new developments such as decentralized finance (DeFi) have emerged, making crypto more accessible to a broader audience.
However, as with any investment, it’s important to consider both the potential rewards and the risks involved. Investing in cybersecurity and cryptocurrency can be highly speculative, and the value of these investments can be quite volatile. There are also regulatory risks to consider, as governments around the world are still figuring out how to regulate this new technology.
It’s also worth noting that cybersecurity is not just about technology but also people and processes. Training and educating people to become cyber aware and improve security processes is also an important aspect of cybersecurity.
Overall, cybersecurity and cryptocurrency are both areas that have the potential to provide strong returns, but they are also highly speculative and come with unique risks. It’s always best to conduct thorough research and consult with a financial advisor before making any investment decisions.
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Interviewee: Stefan Ristic
Company: bitcoinminingsoftware
Answer: I find crypto very attractive since we are currently in the bear market. Most people I talked with on conferences agree that crypto markets are running in cycles strongly tied to Bitcoin halving and BTC supply/demand mechanism. Similar to 2016/2017 and 2020/2021, some further drop in prices is to be expected until 2024. In late 2024 and 2025, I expect another bull market for crypto, and a possible ATH for BTC.
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Interviewee: Jeremy Britton
Company: BostonTrading
Answer: Investing into crypto markets today is akin to investing into stocks after the crash in 1987, or 1994, or 2001, or 2008, or 2020 (those who are good at math will see a pattern!) Whilst many people flock to a booming market, nothing goes up in a straight line forever. It takes a bold person to invest when the market is down, but lower prices mean maximum opportunity.
A little over 20 years ago, the infamous “Tech Wreck” wiped billions from the NASDAQ. Hundreds of internet companies such as Pets.com went bankrupt and never returned. Amidst the carnage, good quality stocks such as Apple and Microsoft also dropped 60–80%, as many investors feared it was the end of technology and innovation. Really: check a chart for 1999.
As we now know, Apple and Microsoft went on to make billions more in revenue, and anyone who bought the stock during their “75% off sale” would have been very richly rewarded.
Many people say they would have loved to have hindsight and purchased MSFT, TSLA, AAPL or Amazon when the stocks first came out, but almost nobody did, and very few people bought Amazon when it crashed from almost $5 to around $1. If you had courage to purchase when Amazon had their 80% off sale, every $5 stock that you bought for $1, would have grown to over $170; that is a very big reward.
Right now, many cryptocurrencies are trading for huge discounts of 70–90% off their peaks. Non-token or blockchain stocks such as Coinbase are also massively discounted. There are no guarantees as to which ones will bounce back 15 000% like Amazon and which ones will be worthless like Pets.com, so it is best to do your own research (DYOR) and diversify into many different projects, or find someone who can do it for you.
As someone who has lived through several recessions (and someone who owns a 200-year stock chart) I am confident that the quality projects and businesses will always bounce back.
You can often tell the difference between the good ones and those that are just hype by applying the “COIN” test:
1) C is for check the C-suite, CEO, CFO, CMO etc for relevant experience.
2) O is for check the Offering: is the product or service something that people will want in the future.
3) I is for Investors: see who else is buying the token or stock. Are they smart, wealthy and wise investors, or just moonstruck fanboys who will follow Elon off a cliff?
4) N is for Network. See who is talking about the company and their products or services. If there is a strong base of loyal followers, they could well become buyers soon.
[The 4-step COIN protocol is from www.Cryllionaire.com, a not-for-profit educational site with no products to sell]
When markets bounce back, as they always have, after every war, depression, recession or black Monday, you want to be the one person who bought when fear was greatest and prices were lowest. Not only will you make far more money than others, you will have proved your mettle as a person.
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Interviewee: Matthew de la Fuente
Company: KYAX
Answer: Millennials were too young to fully understand, invest in and take advantage of the boom, bust and wealth creation of the Web 1.0 Internet. With Web3 and Crypto, Millennials may (I repeat, may) have the opportunity to leverage their meagre capital into a force multiplier, twice in a generation, wealth creation opportunity. The patterns are there for everyone to see, from the user adoption curves, the customer personas to the ecosystem support and development we see emerging for this industry. However, some laws of investing don’t change — with high reward, comes high risk, and individuals should really think about where this fits in their investment portfolio based on their appetite and capital constraints.
While I remain absolutely certain that Web3/Crypto will be at least as big as Web 1.0, I’m also certain that, like Web 1.0, there will be Amazon, Google, Yahoo, there will also be Web3 versions of large, failed initiatives like, pets.com and boo.com.
I do not provide personal investment advice and I am not a qualified licensed investment advisor. I am an amateur investor.
All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies.
I will not and cannot be held liable for any actions you take as a result of anything you read here.
These comments only refer to Crypto
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Interviewee: Valerio Puggioni
Company: Yeeha Games
Answer: Yes, absolutely. We’re in a bear market. Like all markets, crypto moves in cycles, but the cycles are more predictable, since they’re literally programmed into the chain. Specifically, the blockchain I’m referring to is that of Bitcoin, which undergoes a halving every 4 years.
What’s the halving?
It’s when the difficulty of mining BTC grows by 2x, thereby forcibly ensuring scarcity. Because all other crypto assets trend behind BTC, with Ethereum leading the altcoin market, after the rise of BTC and its market dominance starts to fall, the altcoins start showing strength as well.
These cycles have occurred predictably over the past 3 cycles. However, past trends are no guarantee of future continuation. Still, should the trend continue, then we are at the bottom, or very near the bottom of this bear market, which is the best time to invest. This is when crypto is going at a massive discount, and we may never see prices this cheap again.
But this comes with a caveat. There is no way of knowing which altcoins will survive the bear market. Many of the most prominent assets from the past market cycle are not in existence today. Can we fall more even from where we’re currently at? Sure. So here’s what I’m doing: I’m buying. I’m buying now, and I’m buying all the way down. But I’m sticking to my conviction bets. There’s nothing like a bear market in wiping out low-quality projects, and I don’t have a crystal ball.
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Interviewee: Ivan Marusic
Company: GameTaco
Answer: There is no doubt that cyber/crypto is a hot topic and continues to be so, but there are also a lot of question marks around it.For example, there have been reports of high-profile thefts of large sums of money in recent months, with criminals apparently targeting crypto exchanges.
Meanwhile, there are concerns over the ability of governments to regulate this rapidly-growing industry effectively.So is investing in cyber/crypto still wise and attractive in today’s market?Well, firstly, it’s important to remember that cyber/crypto is still in its early stages — it’s not yet mature enough for widespread mainstream adoption.
This means that there are still plenty of opportunities for people to make profits from it, but it also means that there are likely to be more volatility and risk involved than with more established technologies.
Secondly, there are still some very significant regulatory hurdles to overcome before crypto can be used on a wider scale. For example, Japan has just announced that it will treat crypto as currency rather than assets, which could make things a lot easier for businesses looking to use it.
So overall, while cyber/crypto remains an interesting investment proposition, investors should be prepared for a degree of volatility and risk. However, this doesn’t mean that it isn’t worth considering — especially given the current market conditions.
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Interviewee: Greven Manuel
Company: EmojiSprout
Answer: Investing in cyber/crypto can still be a wise and attractive option for those willing to make informed decisions. With cryptocurrencies like Bitcoin becoming more mainstream, there are now plenty of options for investors to diversify their portfolios by including cryptocurrency investments. Investing in crypto requires research, due diligence, and discipline — it is important to remember that the market is highly volatile and unpredictable. However, as with any investment strategy, done responsibly, it can offer potential returns that far exceed traditional investments. By staying up-to-date on industry news and trends, researching different exchanges and coins, and setting realistic expectations and goals ahead of time, investors can craft an investment plan that works best for them while minimizing risk.
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Interviewee: Anthony Bautista
Company: Pure CBD Now
Answer: Investing in cyber and crypto assets can be a highly speculative endeavor and the market is highly volatile. While technological advancements and growing interest in cyber-security are positive factors, the regulatory environment and market conditions are constantly changing making it difficult to predict future trends. It ultimately depends on an individual’s risk tolerance, investment goals, and familiarity with the market. Diversification and considering the specific use case and fundamentals of the projects can be a good approach to minimize risk. It’s important to consult with a financial advisor or expert before making any decisions.
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Interviewee: Illia Matviiv
Company: DeFiYield.App
Answer: With numerous Billion-$-Worth TradFi institutions entering the crypto space, we see a clear correlation between $BTC and S&P 500: https://twitter.com/defiyield_app/status/1610303722126544898
We can surely call what’s happening in crypto market right now just a market recession that goes in a straight correlation with most Index Funds. In other words — a common market cycle that, a part of which always was a massive dump in price of all assets. To Fight the 8.2% inflation, FRS started to increase interest rate, which has caused massive outflow of funds from markets.
With this being said, you can be sure that crypto has grown huge enough, that it now simply repeats Stock Market’s pattern of reacting to market cycles. When inflation will be lower than 4% and FRS finally launches the “money printer”, the money flow into markets will begin again, and crypto will hit new ATH’s.
However, crypto investors shouldn’t feel too safe. According to our Report of Fraud Activity, in 2022 more than $49B were stolen in crypto: https://medium.com/@DeFiYieldSec/report-49-billion-lost-in-crypto-in-2022-infographics-a2e83b662196
Crypto remains one of the most high risk investing fields, and everyone who invests in crypto assets should be familiar with the most basics safety rules, to keep their assets secure. High risk, however, usually pays in higher reward.
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Interviewee: Lars Seier Christensen
Company: Concordium
Answer:
It is always better to invest when markets have retraced than to invest in bubble conditions.
So, in very general terms, the market is much more attractively priced than a year ago.
It is, however, not always the same projects that rally the next time. Some simply go under, and become irrelevant as technology continues to progress irrespective of whether markets are moving up or down.
I believe the blockchain industry has a bright future, the same way I felt a year ago. And with more and more applications becoming obvious, this conviction actually continues to grow.
I don’t give investment advice, but I am certainly looking for opportunities myself at this time. Real opportunities, which means projects with solid use cases that solve problems, improve processes and drive innovation.
As with any young technology, risks are high, so unless you feel very comfortable with that, and believe that you truly understand this blockchain industry, I would stay away. But if you tick these boxes, I think the current market conditions offer good opportunities.
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Interviewee: Elio CONSTANZA
Company: Wealth Advisor PROS
Answer: The question ask “still wise and attractive” indicating at one time it was wise and attractive but now it may or may not be.
If your investment thesis at one point moved you into cyber/crypto sectors, what was the motivation?
Everyone needs to ask themselves that question. Why did I get involved in this type of investment in the first place?
If your answer is: quick profit, it’s the hottest sector, high percentage moves in short time frame, potential to get rich on one pick, then the answer to your question is NO.
As we have all seen as of late the crazy gains have gone away. When money is harder to come by people tend to think alot more before spending and investing it. With inflation, tighter credit, home equity drying up, it’s harder for investors to take risk in highly speculative assets. The mind set shifts to preserving capital and taking less risk which in turn is less speculative. Now this is for one type of investor which is the person looking to “Get Rich Quick.” That time has pasted.
On the other hand, if you are the type of investor that is looking at adoption rates of new technologies, similarities in previous innovations like internet and cell phones, looking at future appreciation (5 -10 years) and can ignore day to day price movement, you are excited. If you believe our financial market infrastructure is changing and it’s no longer going to be T+2 settlement times, atomic swaps will change trading of all assets, then you understand crypto and cyber security MUST be involved. As a result, you need to analyze and identify companies and projects that will be involved in this change and not just follow hype. I believe there are Amazon, Google, Yahoo’s of crypto and cyber security in the market today and if you were investing at the makert highs why wouldn’t you be buying the same companies and coins while they are on sale? IT’S A GREAT TIME TO BUY.
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Interviewee: Jacek Grebski
Company: Topl
Answer: For those of us who have been through a handful of crypto cycles, what we’re experiencing now in the market is not out of the ordinary. Although, as a nascent technology and asset class, the type of speculative behavior and volatility that we see in crypto assets is to be expected, also looking at the industry as a whole, where we are today and where we were even a few years ago, you can see metrics moving towards a more stable and less volatile market, despite it not feeling so for investors coming from more established asset classes.
There are, however, a couple of things that make this current crypto bear market slightly different. First, we have an indeterminate macro environment for the first time since crypto’s emergence. While inflation, the war in Ukraine, and the effects of the pandemic create uncertainly is downward pressure on markets, we still cannot discount the fact that we are living in a golden age of technological innovation that has been and will continue to accelerate with the advent and implementation of de novo technologies such as blockchain, AI, and quantum computing.
There is also the issue of regulation, specifically in the US, which has been a laggard in this regard, whether purposefully or not. Unfortunately, the lack of US regulations also creates uncertainty for US investors, and political polarisation can further exacerbate the Web3 divide in congress. I am hopeful that frameworks such as the EU’s MiCA will be accepted globally and act as detractors for bad actors who only create a public and policy disservice to the blockchain industry.
So is it worthwhile to invest in crypto today? I would give it a definitive yes. The technology, especially blue chips, isn’t going anywhere. The market, while it has the potential to shutter still, has been moving sideways, and many have also called for the bottom to have already come in. In a short-term investment horizon, I expect upward momentum towards the end of this year or in the first half of the next, and in the long term, crypto is likely to be one of the best-performing asset classes of our lifetime.
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Interviewee: Pax Hennersie
Company: Queens of Capital
Answer: is investing in cyber/crypto still wise and attractive in today’s market?
Many believe that traditional markets continue to be the safest and probably the most lucrative investment bet in the long run. That may be true to an extent, and I’m certainly not against a diverse portfolio, but in my opinion, not investing in crypto assets and Web3-related industries, even just a little bit, could end up being the biggest mistake of your life. Why? Because Bitcoin and cryptocurrencies are just the beginning. The crypto market right now is about as nascent as early 90’s email. That was Web 1.0. The evolution to Web 2.0 took us to online banking, shopping and live, instantaneous communications, but what’s coming next with Web 3.0 and the potential of Blockchain will be compounded 100-fold.
What’s the benefit of Blockchain? Here’s an example of where it will make a notable difference: Global payment systems that utilise blockchain technology will be faster, more secure and more easily accessible, especially when transacting large sums or providing financial instruments to the great swathe of the worldwide unbanked. Such advancement could make regular banking obsolete and the newer decentralised internet will transform how we do business, how we communicate, how we consume media, news, entertainment, art and social content, and how we play (play-to-earn is literally a game changer!).
If there were ever to be an alert for investing in crypto and getting in on the ground floor, this current bear market could be the perfect one. So could the fact that there is more institutional and governmental investment in crypto than ever before; or the fact that as access to the internet becomes more widespread, and therefore, so does access to online education, business opportunities and blockchain-related jobs; or even the fact that as of 2022, over 320 million people own crypto assets, and counting. Over a 5–10 year time horizon, you might be so pleased that you did invest, especially if you did your research and chose to invest in crypto assets that support this new future that is barrelling towards us at momentous speed.
Imagine having invested a few hundred dollars in Amazon, Facebook or Apple when they were just getting started. That is the potential of this market. Only days ago, influential fund manager, Cathie Wood of Ark Invest, predicted that Bitcoin alone would be a million-dollar coin by 2030. Others have forecast over $20 million a coin. For retail investors, Bitcoin and other crypto assets are easy to acquire; there are no minimum entry points and other than learning a few minor things, such as how to open an exchange account from which to buy crypto and how to transfer your coins into your crypto wallet for safe storage, it’s never been easier for beginners to get involved.
Nevertheless, understanding your risk appetite is essential when it comes to investing, even more so when starting in the crypto space, purely because it is still embryonic and is incredibly volatile. Generally speaking, the higher the risk, the more potential for greater returns on your investment. Buying and holding long-standing crypto assets such as Bitcoin (BTC) and Ether (ETH) would be at the lower risk end of the scale, so long as your time horizon extends beyond several years. Trading crypto derivatives and investing in NFTs, collectables and very young crypto tokens would be at the much higher risk end of the scale. It is recommended to never risk capital that you are not willing to lose entirely, no matter how high your risk tolerance is.
In sum, investing in crypto assets and Blockchain-related companies with a reputation for surviving volatile global conditions and/or a use case that cannot be ignored is probably the closest thing to getting an inside tip that you’re gonna get.
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Pax “The Empress” Hennersie is the founder and CEO of Queens of Capital, an education platform for women and girls, whose flagship programme, ‘Queendom’, teaches the mechanics of investing in and trading crypto assets, including everything from how to open an account as a complete newbie, through to the advanced techniques of trading the crypto derivatives markets. Other courses offered include ‘Castle’, how to unclog the flow of money, how to let go of self-limiting beliefs about money, happy debt recovery and increasing one’s earning potential; and ‘Empire’, which is live, technical analysis (TA) training in small groups.
Queens of Capital’s mission is to help women and girls to discover new ways to add to their household income, unpack the vast array of investment opportunities available to them and have fun doing it so that they ultimately feel able to tread their own path to financial independence and autonomy.
Pax is happily married with a young child and leads a digital nomad/world schooling life, travelling from New Zealand to Central America, Europe and the United Kingdom. Pax’s educational courses and mentorship programmes can be found at https://queensof.capital.
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Interviewee: Noel Kim
Company: Livecoinwatch
Answer: Investing in cryptocurrencies is an opportunity not to be missed for those who want to grow their wealth in the long-term. Despite the volatility and market fluctuations that have occurred in the past, the future of crypto looks incredibly bright.
One of the main drivers of this growth is the rapid digitization of the global economy. As more people and businesses move online, the demand for digital currencies and assets is skyrocketing. Another trend that is fueling crypto’s growth is the increasing interest of central banks in creating their own digital currencies. These digital representations of fiat currency, issued and backed by the central banks, are aimed to complement or replace cash and other forms of fiat currency. This development is a clear indication that the world is moving towards a more digital and cashless economy, which will only increase the demand for digital currencies and assets like crypto.
The crypto ecosystem is also constantly evolving and innovating. Decentralized finance (DeFi) applications and protocols are making it possible for people to access financial services without the need for centralized intermediaries. This is a huge step forward for the crypto industry and will likely pave the way for further innovation and adoption in the future. Furthermore, despite the failures and bankruptcies of some companies in the space, we are seeing new and exciting progress in areas such as decentralized finance, distributed computing, blockchain scalability, and governance structures. These innovations will continue to shape the future of crypto and will likely drive its growth in the long term.
Another reason why crypto is a good investment for the long term is the observed four-year cycle in the price of Bitcoin. Historically, Bitcoin has experienced a pattern of significant price increases followed by corrections, with each cycle lasting approximately four years, based on the Bitcoin halving cycle. This pattern suggests that we may be approaching the end of the current cycle, which could lead to another significant price increase in the near future.
In conclusion, the long-term potential for growth and innovation in the crypto space is undeniable. As the digital economy continues to evolve and expand, crypto is poised to play a major role in shaping its future. Investors who take advantage of this opportunity now will be well-positioned to reap the rewards in the future.
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Interviewee: Chizurum Henry Chikwendu
Company: Lonelyaxe
Answer: In today’s market, it is a taboo not to invest in cryptocurrency.
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