Chapter 7  Cryptocurrency as Investment

Crypto is one of the most sought-after investment vehicles as a diversification strategy. The correlation between crypto and assets is not yet guaranteed as for the beginning of the whole crypto surge, there was a negative correlation. Where the markets move down and crypto moves higher, and vice versa. Now the overall correlation seems to be in lockstep. Meaning in 2022, we saw the market (SPX) fall from highs of roughly 13% while Bitcoin fell around the same time, now down about 45% from highs. Granted, BTC formed it’s high much sooner than the SPX so it could have even been a precursor to the drop.

The diversification aspect is still more of a mystery. However, the investment aspect is still there nonetheless. Institutions are starting to turn to crypto as a means of investment and looking for opportunities there. However, it’s not as easy as buying BTC and letting it sit forever. There seem to be countless cryptocurrencies out there, some of which are better investment opportunities than others. Meaning, there are some that hold real value and have future value based on what their potential is in modern society and going forward.

So which crypto investments hold real potential future value in terms of innovation and price growth?

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