Hodl CEO: Cryptocurrencies are like the dot-com bubble in the late 90s

For Maurice Mureau, CEO of crypto investment fund operator Hodl, “there isn’t much left to invest in anymore.” With inflation soaring, the bond market slumping and real estate getting tougher, one asset class has (unsurprisingly) caught the attention of fund managers — cryptocurrencies. During the European Blockchain Conference in Barcelona this week, Cointelegraph editor Aaron Wood caught up with Mureau to share his thoughts on the future of investing in digital assets.

"It's like the dot-com bubble in the late '90s, so you're still in the early days," Mureau said. "A very solid use case for cryptocurrencies is becoming more and more evident in the gaming industry, where people invest their time and get paid for it, all arranged by the blockchain." He reiterated that if no additional issuance, bitcoin There will only be 21 million coins. Therefore, referring to the hyperinflation in Turkey and Argentina, Mureau said that central banks cannot print more digital currencies. “So, to me, it’s a pretty safe hedge. A 30% swing in asset prices can be a bad thing, but not if you’re losing 70% of your local currency’s purchasing power every year.”

When asked about his advice for new crypto investors, Mureau explained for institutional investors, who are generally risk-averse about protecting their capital, that a 1% to 5% ratio is the ideal exposure target for these institutional investors. Investors are generally risk-averse in protecting their capital. However, he said retail investors, especially younger ones, could easily exceed that target as there would be ample income going forward to replenish portfolios. Currently, digital assets represent only 0.12% of all outstanding financial assets. "So, if it goes from 2% to 4%, that's more than 10 times what it is now, that means you've got some mature models. If you multiply the raw number by 12, you're at gold level."

Of course, institutional investors often have access to deeper sources of information. But when asked what retail investors can do to hone their research skills, Mureau said:

“First off, on-chain analysis is really important because you can see who actually owns the tokens. If you see 90% of the tokens are owned by three people associated with the project, then you know it’s a bit of a scam.”

He went on to say: “There are still a lot of companies like us that just write reports and post them on their website. Other elements that Mureau recommends investors research are use cases such as staking opportunities, social media presence and asking their communities.” It might be a challenge, but it's similar to the early days of the internet. Eventually, the market will get rid of those who have no real appeal and just see cryptocurrencies as a fad. "