Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

As Cryptocurrencies Beckon, Keep An Open Mind: Crypto Investor

CryptocurrencyMay 13, 2021 01:44PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

By Christiana Sciaudone

Investing.com -- Nonfungible tokens are hot -- as art and collectibles -- but insiders are more interested in the real life potential of the Ethereum-hosted technology, says one crypto expert.

NFTs can represent the transfer of value, of anything, according to Scott Melker, a relatively long-term crypto investor, who was steeped in equities until the 2010s when he started to poke around cryptos. Now he's a believer, and hosts a crypto-centered podcast, “The Wolf Of All Streets," and writes a daily crypto newsletter. 

"You can tokenize anything and transfer it directly without a third party," Melker said in a phone interview this week. "It could be a mortgage, a car title, stocks without clearing houses needed to clear the transactions."

The NFT transactions would be logged transparently on the blockchain. So who wouldn't want to cut out the cost and bureaucracy of the middle man in favor of faster and more open methods of doing business? Why haven't we jumped to adopt this technology?

Think banks, payment companies and governments that do not want to see their power and financial might slip away, Melker said. They are taking steps, however, to join the future.

"Central bank digital currencies are coming; You can't stop this tech, but they can hope to control it."

Melker urges all investors to push into crypto, but also keeps his traditional retirement account, equities and real estate investments humming. 

"Bitcoin is the most important asset of our generation by far," but boring portfolios are also important, Melker said. "You should have exposure to both."

One possible way to have exposure to both? A U.S. bitcoin exchange-traded fund. Some of the biggest institutions, such as pension funds, are itching to get exposure to crypto via ETFs, since they can't buy directly, Melker said. 

"Everything starts and ends with bitcoin to some degree," Melker said. "That is like investing in gold 2.0. That should be the core of everybody's focus."

But the U.S. Securities and Exchange Commission has been cautious, and has yet to approve any such ETF. 

In the meantime, the surge in crypto prices has been compared to the dotcom boom, which Melker sees as an apt and positive comparison. 

While most of the early dotcoms failed, the bust "also gave us the Googles of the world," Melker said. There are far too many coins on the market now, but that will certainly change.

Bitcoin will be a survivor, and Melker suggests, "If you want to be exposed to bitcoin you should buy bitcoin, there are no two ways about it."

Coinbase, the cryptocurrency exchange that went public last month, is not a proxy for crypto -- it's a company, not an asset, Melker said.  

"Coinbase's stock is more susceptible to the moves of the stock market than bitcoin itself," he said. Buying Tesla (NASDAQ:TSLA), likewise, is not the best way to gain such exposure, he said. Tesla, the electric vehicle maker, bought $1.5 billion of bitcoin in February and briefly said it would accept bitcoin as payment for its cars, until reversing course Wednesday and saying it had suspended that offer because of environmental concerns. Bitcoin fell 10% overnight.

Bitcoin, rather, with its scarce nature, is a way to store value.

"Bitcoin has replaced gold and there's not much need for gold,” Melker said.     

Coming in second place is Ethereum, which, as noted above with regards to NFTs, eliminates third parties with peer-to-peer transactions.

"It will be a parallel financial system, it won't replace banks," Melker said. Payment companies like Visa (NYSE:V) and Mastercard (NYSE:MA) also won't go out of business, but they may be forced to innovate.

 

As Cryptocurrencies Beckon, Keep An Open Mind: Crypto Investor
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
Khaled Suleiman
Khaled Suleiman May 14, 2021 12:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How to invest in crypto currency
Andy Darmawan
Andy Darmawan May 13, 2021 9:03PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
oh please, bitcoin & other cryptocurrencies are rat poison, there are nothing more than that. a real currency shouldn't as volatile as cryptocurrency. as soon as the digital currency is launching, nobody would hold crypto anymore.
Peter Murton
Peter Murton May 13, 2021 4:41PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Keep an open mind, sure.  But don't be the naïve victim of snake oil salesmen.  "There's not much need for gold"?  Seriously?  There is absolutely zero need for Bitcoin.  It is manifestly useless.  What a foolish line of reasoning.  Meanwhile Elon Musk is making you the *******of jokes on
Jerry Chaney
Jerry Chaney May 13, 2021 4:41PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Made me rich woooooooo haters gone hate
Mart Bab
Rubberduck1973 May 13, 2021 2:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"Bitcoin has replaced gold and there's not much need for gold,” Melker said. Hehehe  I say damage control message. The value of gold is not defined by Musks comments. As we have seen lately, some one comes out a say something and -10% Bitcoin. That’s all Bitcoin is. A hype that is burning up energie.
Niloy Ghosh
Niloy Ghosh May 13, 2021 2:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why does bitcoin bugs do need to draw gold to prove a point? Gold doesn't need to compare itself with any asset class to stay afloat. it's like fans trying to associate themselves with Taylor Swift and post selfies with her to promote their image but Taylor Swift doesn't need her fans to keep herself up.
Lars Hellman
LarsH May 13, 2021 2:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The PRICE of BTC has run astronomical it is the same as a small house. But I bpught 0.1 BTC in case it goes to the moon. Better buy ETH.
Rodrigo Chavez
Rodrigo Chavez May 13, 2021 2:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lol what? makes no sense the swift person needs fans too, they have the same intrinsic value, gold is a bit more conducive but other than that it's a useless rock. bitcoin on the other hand as a platform allows for suitable programming and store of value is one application.
Vaibhav Pavtekar
Vaibhav Pavtekar May 13, 2021 2:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
if all people start selling gold will it goes and remain on zero even after few year? may be not, since it has physical presence, it will start regaining it's value.will it happen to crypto?I made piece of paper and told ppl this piece of paper's value is $1000.few believed me and took it at $1000, now they are trying to sell it at $2000.if all people
ole hansen
ole hansen May 13, 2021 2:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If you do that, you could call yourself an artist. Please tell me how you will secure your paper - and how people on the other side of the world can access it?
Rodrigo Chavez
Rodrigo Chavez May 13, 2021 2:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yaibhav read more before you post. you sound very unintelligent saying something like that, btc can actually be programmed - it's not an object but a platform.
ONTOTHE NEXT
ONTOTHE NEXT May 13, 2021 2:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why is Bitcoin more expensive than Gold? Does Gold increase value of 500%+ in 2-3 months time?? I Guess not so ****** GOLD! GOLD is for the wild wild west people! This the new generation!! Millennials they call it!!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email