It can sometimes be hard to believe how much cryptocurrency has grown in the past few years. A little over a decade ago, cryptocurrencies were not even on the global map and only had a small and dedicated community. But now, cryptocurrencies have managed to win over even the most dedicated of skeptics in the market, as they move to become a genuine challenge towards regular fiat currency.
But before cryptocurrencies became this all-encompassing greater currency that everyone would buy, it was and still is an asset class. And even in that regard, it has managed to win over a lot of people that once doubted it through its hefty returns and ease of use.
At the international WorldPensionSummit conference, many asset owners spoke up about using cryptocurrencies as a way to diversify their portfolios. It is also worth saying that these were not young and tech-savvy millennials or zoomers who know about the market. The people who attend this summer are some of the late boomers, who are now living off their pension. And you can tell when a market is successful when it can break past the age barrier despite being incredibly new.
During their speech, the asset owner on stage talked about how they were looking for an asset that would offer unprecedented returns. And it became very obvious that the best option that they had was cryptocurrencies. Even though the asset owner did ot wish to reveal their name, they were very excited when talking about the new asset that they have managed to bag.
They said that they found it very interesting to invest in an uncorrelated asset, which would then go on to become part of a portfolio. They also mentioned the inherent difficulties that come with finding these types of assets, and how refreshing it is that they can fall back on cryptocurrencies.
They further continued that they were able to sell the idea of the asset to their board as a diversifying asset. However, this special asset had the return profile of a venture capital with the added bonus of daily liquidity. The board quickly jumped on, especially after hearing that they could use the asset like gold.
He also mentioned that cryptocurrencies have managed to raise some eyebrows throughout the pension community. But in the end, the only real thing that people will tend to care about is the return, and the returns on cryptocurrencies are nothing short of incredible. Obviously, cryptocurrencies have risen by a ridiculous amount, surpassing the growth of gold and S&P500 combined.