Bitcoin has earned its place as one of the defining technologies of this century. Every day, a new wave of people hears about it for the first time and the usual questions follow: Is it too late to party? How can I find out more about it? What is the best way to buy and store my first coin?
Separating the signal from the noise can be tricky, especially with so much information out there. So, we sat down with a couple of crypto experts at Kraken, humuston house, Director of Kraken Intelligence, and Thomas PerfumoHead of Business Operations and Strategy, to help crypto-novices see the bigger picture about Bitcoin.
Why should someone consider investing in Bitcoin over the next 10 years?
House: Everything we do today is done on a device or through a screen. Younger generations understand things like digital scarcity and are comfortable with transferring money across devices and online.
As more people learn about the current monetary system and who controls it, I think they will gravitate towards Bitcoin – a shift spurred by their preference for all things digital. People want to be a part of this new form of decentralized money.
Thomas: The most valuable investment opportunities in technology have traditionally been reserved for early-stage venture capital firms and private equity groups. This exclusive system benefits those with privileged access to the financial system and contributes to the economic gap. Bitcoin expands the reach of individuals around the world with a compelling value proposition that can truly change the pendulum in favor of equality.
How will crypto change technology and finance in the future?
House: I definitely believe that Bitcoin and crypto will disrupt old traditional finance and fintech. These technologies enable new ways to seamlessly send, receive, and transact value without the need for permission, without interference, and at a very low cost.
Crypto will continue to innovate and push the boundaries of what is possible – similar to what we saw during the early stages of the Internet. We’ve all seen the potential, but the best ideas took time to develop.
Thomas: I believe that cryptocurrencies will play a role in the broader financial technology ecosystem, where billions of people can access benefits that they have not been able to enjoy historically. Fintech still relies on a centuries-old financial infrastructure, which has not developed in many parts of the world.
Crypto is the only application layer that actually changes the infrastructure in a completely different and globally accessible way.
What do you think about Bitcoin price volatility?
House: Simply put, we are in an emerging industry with a unique set of risks. The underlying drivers of cryptocurrency prices are very different from those of older asset classes. Things are more volatile as markets try to accurately assess emerging crypto projects. There is a real risk of losing, but this also means that the potential for a rally is greater.
Thomas: It is true for any investment that its value can increase or decrease – as Pete touches, the cryptocurrency markets are largely in the price discovery stage, which means that the price of Bitcoin can rise or fall sharply in very short time frames.
The logical framework (rather than the emotional framework) is crucial here. Coming up with a plan and sticking with it despite market conditions has worked for me. I am a fan of dollar cost averaging, which includes periodically buying a fixed amount of BTC. This way, I am less concerned about the timing of the market and it can “soften” volatility over time.
Where should individuals store their long-term cryptocurrency holdings?
House: I think holding cryptocurrencies on an exchange with proper account practices is wise. Kraken does an excellent job of advising users on how to secure their account, and it takes them extraordinary measures To secure customer funds.
There are a number of hardware wallets on the market for those who want to keep them for a long time. Multisig wallets are something everyone should explore for added security. Alternatively, if you own large amounts of cryptocurrency, some custodial services can store and secure your funds.
Thomas: Your level of sophistication, risk appetite, and the importance of your holdings to you will determine where you choose to hold your cryptocurrencies. Pete team recently Posted a really good note On how to manage portfolios.
My advice has always been that if you feel that you are not qualified to manage your money on your own, you should probably put it on an exchange that will do the heavy lifting for you. Choose an exchange that has a reputation for putting customers first and that you can trust, such as Kraken.
Are you ready to delve into the world of cryptocurrency? download Launch the Kraken app iOS or Android To start.