Since its creation a mere 12 years ago, cryptocurrency has swiftly broken away from mainstream investment markets and created a whole new line of potential wealth. CEO of BCB Group, Oliver von Landsberg-Sadie has shared what investors could stand to gain and lose, and why crypto markets need an entirely different mindset, exclusively with Express.co.uk.
Cryptocurrencies have created a whole new space in the investing sphere in just over a decade, but alongside their rapid growth has been the ever-growing need for regulation.
While a lot of countries, companies and systems are putting regulation into place, the crypto markets are still somewhat of an unknown domain for investors, which is why first-time investors should be wary of treating it like a stock or share.
As Mr von Landsberg-Sadie explained: “You’re not selling shoes or building houses or flying planes. You’re building value around abstract forms of money and data in ways which are still working to prove their form and function.”
He added that having the open mindset to see the criticisms of “articulate sceptics” and “ignore the noise” is the key to committing to crypto growth.
“Let your 100x valuation multiple speak for itself,” he added.
And while some are concerned that building regulations will halt the incredible versatility and growth of crypto, Mr von Landsberg-Sadie said that this is not the case.
“The real world likes rules because rules describe the players, the objects, the objectives and the boundaries.”
He continued: “Part of the problem over the last few years has been one of regulators coming to grips with exactly what these magic beans are for, how to treat them and how to keep markets safe and efficient. The quicker the pace of regulation, the higher the barrier to participation, but the better it is for the game.”
Mr von Landsberg-Sadie pointed out that crypto and blockchain specifically are not only the leading edge of investing, but often fund the forefront of many other industries.
“This positions you to literally make history. It won’t be clear which of your micro-choices today become mainstream solutions tomorrow but your very participation in this space makes it likely that at least one will. Enjoy the view.”
However, like with all investments, the thrilling risk and potentially high reward does not come without a downfall.
Like all investments, cryptocurrency has capital at risk and investors are usually advised to not invest more than they could afford to lose.
Additionally, markets are unpredictable especially in the case of risky asset classes like crypto and investors are warned that those saying they can predict the markets are most likely lying.
Mr von Landsberg-Sadie explained that it’s this aspect of complete unknown that he enjoys the most in his own crypto investments: “I’m happiest when I have no clue where BTC is trading, because my bet is the long-term one.
“We are here to build a new system of money that learns from the mistakes of the past, using and pushing the very limits of technology available to us.
“The only real certainty is that this industry is not going away, it is only going to get bigger and smarter.”
He added that crypto investors may have potential discrimination on their hands as digital projections show crypto as a long-term threat to traditional banking and monetary systems.
Simply put, he said when it comes to banking partners: “Don’t expect them to love you. Instead, learn to coexist by finding ways to innovate together, and make money together.
“When you find a banking partner, look after them as much as they look after you.”
Mr von Landsberg-Sadie also suggested that every ounce of profit earned should be reinvested, commenting that investors should: “Pay in pain upfront and enjoy more durable rewards later.”