Cryptocurrencies, here to stay?

We are often asked for our opinion on cryptocurrencies, in much the same way we get asked for advice about a stock market share.

To us, that means that many people don’t see cryptocurrencies as a payment platform independent of government controls, banking regulations and fee-collecting middlemen. Instead, the attraction seems to lie in the trading of a speculative asset with the potential for eye-popping profits.

In itself, that puts crypto in the category of disruptive tech, much like Uber and AirBnB. That said, understanding its underlying value remains for many (including highly qualified professionals) an elusive concept. Sceptics will point to its volatility and vulnerability to adverse PR as sufficient reasons to avoid.

Unlike established government- regulated currencies, crypto doesn’t have the controls to smooth the bumps. Two things, however, are not to be disputed: after 11 years the crypto market has grown from 1 platform to over 1600. And that from literally zero value in 2010 Bitcoin now trades, at time of writing, at around $47000. In anyone’s description, this is big-scale disruption. For banks, it is a growing threat. For governments, a perplexing and unexpected policy challenge. And for cash, another possible step towards extinction.

At ACCIT, we are neither “for” or “against”, sceptics nor advocates. What we definitely do recommend is that knowledge on any topic will always be valuable and that the best way to understand something is to actually experience it. With crypto, this starts with a crypto wallet. Together with Luno, we welcome new clients with a “gift wallet” that may start them on a path of discovery and the possibility of building a completely different type of investment portfolio.