Capital Management Services- 7 Reasons Why You Should Go For Cryptocurrencies

Capital Management Services
3 min readAug 23, 2021

I was originally asked to source seven bona-fide reasons to allocate part of your investment portfolio towards digital currencies. After conducting the required research, I quickly concluded there are a lot more than seven solid reasons supporting price development in this relatively new asset class.

Here are some, but a few reasons -

Divisible / Fungible / Private / Flexible / Diversification / High Liquidity / Unlimited Choice / Yours No Matter What / Robust Price Progression Factors

The first eight reasons speak for themselves, so let us dig deep into the price progression factors relative to the ‘’ Blue Chip’’ coin, Bitcoin with importance attached to its market cap and weighting.

Bottom line is, when it heads north in price, most, if not all of the other digital smaller cap coins follow the same bullish route.

Digital Gold & A Store of Value

Bitcoin has become a form of digital gold / real estate and a store of value. It is effectively a hedge against bad behavior by our governments and central banks, who have been printing their FIAT currencies with unabated relentlessness since March 2009. At some point these FIAT currencies will lose significant value, and in particular the US Dollar.

It Is A Deflationary Asset & Mathematically Proven

If we wish to ascertain monetary facts, then we have no better tool than mathematics. The old question — What are the numbers? is as applicable today as it has always been.

Factoring in the current supply and demand dynamics, with ‘’halving’’ occurring every four years, supply is reduced by 50% over four-year cycles. So, if demand remains the same, only one thing will happen — the price will go up. If demand increases, and it will, significant returns on money employed will be produced.

A Two Times Move Next Twelve Months?

Given Bitcoin’s positive price progression percentages over the last 12/24 months, two times move north is nothing. When this happens and it will, we will have a six figure per coin asset value, in the main driven by over one million active traders globally.

Traders love market volatility, as it provides them with ample market entry and exit points, a reason to trade if you prefer. These traders are not going to switch over to stocks and shares or commodities, simply because these assets do not provide the same high levels of volatility that digital money does and thus opportunities to profit from a liquid market.

Institutional Money Interest

It is no secret risk managers for sovereign wealth funds and pension funds have been actively monitoring the cryptocurrency space. Over the last 3 to 4 years alone, they have conducted rigorous due diligence into this asset class. When licensed and regulated cryptocurrency custodian services are in place, we will undoubtedly see a flow of professional money move in — 1% to 2% of their treasury, most likely via an ETF. This could easily drive Bitcoin’s value into the seven-figure price range.

Digital Currency Market Is the Only Free Market

True supply and demand factors within an investment arena are quite a rarity nowadays. If you wish to talk about price progression market manipulation, simply look carefully at any one of our main stock market bourses and corresponding indices. The digital currency investment space, does not have consistent price manipulation akin to its regulated mainstream counterparts. But it will, when professional funds begin to flow in an-masse. Move now before that happens.

Conclusion

Only a fool would not allocate between 10% and 15% of their investment portfolio monies towards this robust and exciting digital asset class. It is here to stay folks and only get bigger.

Welcome to the technological revolution and digital money.

Capital Management Services have the knowledge and expertise to help you build a solid digital currency portfolio. They know this market and what drives it, price positive and price negative.

Contact them today at www.cpital-management.com.au

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Capital Management Services
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Capital Management Services is an client-led investment company, established in 1998 with our roots in New South Wales.