Bitcoin and Ethereum have long-term value: Crypto Platform Exec

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What do you want to know

  • Although the crypto market lost hundreds of billions of dollars in value in May, Bergquist expects long-term growth for Bitcoin and Ethereum.
  • Crypto expert Ric Edelman warns that financial advisors risk losing credibility if they cannot discuss digital currency with their clients.
  • Advisors who want to help clients interested in cryptocurrencies should keep it simple, says Bergquist.

The case for cryptocurrency and blockchain remains strong despite recent market turmoil, with major and proven players presenting attractive opportunities for long-term value, according to Neil Bergquist, co-founder and CEO of the digital currency exchange Coinme.

The cryptocurrency market lost hundreds of billions of dollars in value in May as broader financial markets slid on economic concerns and the algorithmic stablecoin TerraUSD lost its peg to the dollar and the associated coin , Luna, collapsed.

Nonetheless, Bergquist expects long-term growth for major digital currencies and technologies, including industry leaders such as Bitcoin and Ethereum.

“I think the fundamentals of cryptocurrency and blockchain are still valuable and I think people will shift their asset reserves to more longer-term cryptocurrencies that have larger market caps and have more of resilience, and that haven’t shown any sort of technical issue like what we see in stablecoins,” he said in an interview in May, days after Bitcoin hit a 52-week low.

“I personally don’t sell any cryptocurrencies, I just hold on, and I know this time will pass and the major cryptocurrencies will continue to grow in value over the long term,” said Bergquist, who favors cryptocurrencies with large market caps that have stood the test of time, have large communities, and offer unique real-world use cases or technology value enhancements to the industry. There are many different strategies available to individual investors, he noted.

Value in Proven Players

Potential buyers should be careful though, as the nearly 20,000 cryptocurrencies that currently exist are unlikely to all survive in the longer term, he predicted.

“From a technical standpoint, it is extremely easy to create cryptocurrency these days, which is one of the reasons why buyers should be careful because there could be a coin that has been created and then it was a nice lipstick on the pig, and then this piece really doesn’t do anything unique or new and in fact there might even be some suspicious actors behind it,” Bergquist said. It is therefore very important to do due diligence on coins when you start looking at alternative coins and coins with small market caps or relatively new coins.”

Coinme, which started in 2014 by introducing Bitcoin ATMs, now operates the largest such network in the United States, with over 21,000 exchange locations, and allows consumers to purchase seven cryptocurrencies through its app: Bitcoin, Ethereum, Polygon, Stellar Lumens, Dogecoin, Litecoin, and Chainlink. The Seattle-based venture capital-backed company sees digital currency as a tool for economic empowerment.

While experts and enthusiasts see a financial services revolution in cryptocurrency and the blockchain technology behind it, many consumers remain confused and wary. Even before the recent market crash, critics were citing the risks surrounding digital currencies, including their volatility, lack of standardized procedures for holding them, and a uncertain regulation structure.

Then there is simply the lack of understanding. Crypto Literacyan industry group, states on its website that 98% of people who take its online crypto-literacy quiz fail.

However, as consumer interest grows and cryptocurrency begins to take hold in the corporate world – Fidelity recently announced that it will be adding Bitcoin as a choice in 401(k) accounts – financial advisors who may not have been paying attention to the industry have come under pressure. to pick up speed.

Cryptocurrency expert Ric Edelman, founder of the Finance Professionals Digital Asset Advisory, recently warned that financial advisors risk losing their credibility if they cannot discuss digital currency with their clients. The cryptocurrency is expected to generate $5 billion in advisory fees over the next five years, he told a wealth management conference.

To find out, buy it

Coinme’s Bergquist offered advice on how financial advisers can help clients interested in bitcoin or other digital currencies, and suggested that advisers keep it simple.

“For people who are just starting to want to allocate money to cryptocurrencies, it is important that they understand the ABCs of what blockchain is, what is a digital currency and more. precisely what are the major cryptocurrencies in the market – bitcoin, ethereum – and really help them understand why they are valuable and then also help them understand why they are valuable by buying them and being able to perform transactions with them, either as a store of value or as a medium of exchange,” Bergquist said.

Rather than trying to learn everything about cryptocurrency and blockchain at once, those who want to understand it should start by focusing on Bitcoin, then learn about Ethereum “and then go from there,” Bergquist said.

“We always say the best way to learn about bitcoin is to buy it and be able to use it as a digital currency like many of our customers and people in the industry use it,” he said. -he declares. Over 80% of the world’s population now owns smartphones, “and thanks to blockchain technology, these phones can now receive, store and send money in a decentralized and distributed way. And that’s a massive technological breakthrough,” he added.

Learn the basics

“As financial advisors and clients of financial advisors begin to learn more about what Bitcoin really is and what cryptocurrencies do to solve real-world problems, they will begin to understand its value and begin to look beyond the headlines and basically know that this is going to change the world,” Bergquist said. “And that creates a long-term perspective, which is really important, especially in times like these.”

The famous Bitcoin White Paper who introduced the concept details exactly what the peer-to-peer electronic payment system does, Bergquist said. The document explained that the parties would make direct cash payments through a peer-to-peer network without a financial institution acting as an intermediary.

Bitcoin, a software-based unit of account, is built on the Bitcoin blockchain, an online distributed ledger powered by a network of computers, called miners, that process transactions on the ledger.


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