April 2021

Crypto World From the Perspective of a Professional Investor


Is there a bubble emerging in the crypto market and is there still room for a professional investor to generate returns in a reasonable manner within this space?
In 2015 iTech Capital invested in its first "crypto-asset," a cryptocurrency mining hardware manufacturer and blockchain software developer — Bitfury. At that time there were not many institutional investors willing to risk a relatively large check in this obscure, intimidating, and yet alluring niche. Two years later, when bitcoin was worth $2,000, I was assured that the cryptocurrency would be worth $50,000 by 2022.

Since then, we have seen an ASIC arms race between miners from around the world, the rise and fall of the ICO market, and the emergence of a large number of new blockchain-based technologies that are reaching deeper into many traditional sectors of the off-line economy.

The increased belief that bitcoin could serve as both an anti-inflationary hedge as well as a speculative instrument with mouth-watering returns inevitably provoked a rise in the price of this asset. Today, the price of a single bitcoin has surpassed $58,000.

Is there a bubble emerging in the crypto market and is there still room for a professional investor to generate returns in a reasonable manner within this space?

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