Over the past year, the first cryptocurrency has risen in price by more than 300%. However, bitcoin is increasingly called the “mother of all bubbles”. In order to find out about the prospects for bitcoin, our editorial team contacted the head of the Aravana CM trading department, Valdis Wooldorfs.

Could the first cryptocurrency claim to be the dollar in the near future?

Valdis: Bitcoin is a very interesting project, which of course will never replace dollars, and even partially, simply due to the fact that it is technically unable to perform all the necessary functions. It can hardly be the only measure of accumulation of wealth as, for example, gold, due to the fact that it is highly volatile. People will not use cryptocurrency exclusively. Such “ascents” are quite normal for the first cryptocurrency. You and I have witnessed rapid rises of 200/300 percent or more, then a period of 70/80 percent correction. Now the period of growth is either over, or there is still 1 small leap upward and further, according to tradition, a long, long fall. He is not destined to “collapse”, but there is no happy future there either. Essentially, the entire cryptocurrency has been punching a path for government cryptocurrencies like the crypto dollar, the crypto euro, the crypto yuan, all of which we will see in the near future.

The changed conditions allowed bitcoin to compete with gold for a place in the portfolios of investors who had previously refused it. Do you think professional investors will start investing in cryptocurrency amid insane volatility?

Valdis: Bitcoin very conditionally competes with gold, the latter has much more capitalization, more understandable pricing and a century-old history of accumulation as the only means of wealth. Moreover, all kinds of regulations weakly restrict investments in gold for hedge funds, pension funds and other funds. Therefore, only conditional competition can be traced here. At the same time, do not forget how they invest in the fund – 1.2% of the amount for risky assets, which include bitcoin, we are not talking about 20-30-70% participation. Therefore, the return on the entire portfolio will never be astronomical. As a rule, regulators provide a clear framework for where you can and cannot invest.

Professionals are always where volatility is, simply because they know how to deal with it and try to get the most out of their investment in a much shorter period of time.

Should non-professional investors take any steps?

Valdis: Non-professionals should move away from the “blue screens”. If you wish, you can invest 10% of the funds and forget about it for 10 years, picking up more when the opportunity arises. Speculating will not work, this is a sure way to say goodbye to all savings.

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